Ahmed and Dubai Islamic Bank (DIB) have entered into a musharakah mutanaqisah contract to purchase a house. Initially, Ahmed owns 40% while DIB holds 60% ownership. The house costs AED 2,000,000, generating a monthly rent of AED 5,000, payable every six months. Ahmed aims to acquire an additional 10% ownership every six months until he becomes the sole proprietor. Conduct the necessary calculations to answer the following: 1- What is the breakdown of rent payable to DIB each year/month based on its ownership share? 2- How much does Ahmed need to pay to DIB every six months to acquire an additional 10% ownership? 3- What is the cumulative payment (rent purchase payments) made by Ahmed to DIB over time? 4- How does DIB's ownership share change over the specified period? 5- How does Ahmed's ownership share evolve as he purchases an additional 10% every six months? Make sure you provide the calculations and results for each aspect, illustrating the progression until Ahmed becomes the sole proprietor.

Answer rating: 100% (QA)

Here are the calculations 1 DIBs ownership share and rent entitlement Initial ... View the full answer