Case study Mohammed needs money in order to buy a latest Villa. The cost of building the Villa is BHD 75,000. His wife, Mariam, has savings up to BHD 20,000 and needs additional financing of BHD 55,000. Mohammed knows that he can always borrow from any bank in Bahrain but he wants a Shariah compliant financing. And he aware about the basic conditions for the validity of sale is that the commodity must be in existence, seller must own commodity and the seller must have physical possession of commodity and Mohamed is not aware about the exceptional product in Islamic Banking so Mohammed seeks your advice on a number of issues before he can make his decision on which financing best suit his needs i.e

Q2: Mrabahr Price Breiefly explain how he can finance his house through Murabaha and if the the bank sets the profit margin rate per annum, 5%. and the financing period = 10 years. Then, determin the selling price

Q3: DIMINISHING MUSHARAKA CONTRACT a- Explain how can Mohamed finance his house through diminishing musharaka In your discussion mention what is the Cost of house and whats the Bank financing percentage

b- Tenure: 10 years Rental (return rate equivalent to) : 7.3% p.a. (of investment) apply the best approach to calculate the monthly payment plan for the home purchase