A dairy manufacturing company (DMC) sought to finance machines from an Islamic Bank using a Murabaha for Purchase Orderer. Through the operation, the Islamic Bank bought the machines for 8 000 000 QR cash (including all costs) to sell it to DMC with the following conditions:

DMC pays 10% down payment (hamish jiddiya) from the total cost

The profit rate of the Islamic Bank is 5 % per year.

DMC pays the Islamic Bank using equal monthly installments over 8 years.

Find the following:

The annuity Factory (No rounding, 5 digits after comma)

The monthly installment payment

The Murabaha Price

The Islamic Bank's Profit

Answer rating: 100% (QA)

To find the annuity factor we can use the formula A rPV 1 1 rn Where A annuity factor r periodic int... View the full answer