Question: 1. Direction: Read, interpret, and analyze the problem to find the correct solution. Ijarah is a concept used in Islamic commerce. Ijarah denotes a contract

1. Direction: Read, interpret, and analyze the problem to find the correct solution. Ijarah is a concept used in Islamic commerce. Ijarah denotes a contract where one party transfers the right to use an item he owns to another party for a specified period in exchange for an agreed consideration. Colloquially, Ijarah is often called 'Islamic leasing'. Cost of financing or purchase price = $150,000 Rate of profit = 10.5% flat/ annum Period of lease = 12years (144 months) Use the Shariah method to calculate monthly Ijarah rental amount. [6 marks]

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