Ahmed approaches the Islamic Bank of Arlington in the USA to finance the purchase of an industrial washer-dryer for his laundry business at USD10,000. The bank agrees to purchase the machine from the manufacturer and then sell it to Ahmed for USD12,000, which is to be paid by Ahmed in equal instalments over the next 3 years. What type of Islamic financing is being offered by the bank to Ahmed and how much is the monthly instalment?
Ahmed approaches the Islamic Bank of Arlington in the USA to finance the purchase of an industrial washer-dryer for his laundry business at USD10,000. The bank agrees to purchase the machine from the manufacturer and then sell it to Ahmed for USD12,000, which is to be paid by Ahmed in equal instalments over the next 3 years. What type of Islamic financing is being offered by the bank to Ahmed and how much is the monthly instalment?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Ahmed approaches the Islamic Bank of Arlington in the USA to finance the purchase of an industrial washer-dryer for his laundry business at USD10,000. The bank agrees to purchase the machine from the manufacturer and then sell it to Ahmed for USD12,000, which is to be paid by Ahmed in equal instalments over the next 3 years. What type of Islamic financing is being offered by the bank to Ahmed and how much is the monthly instalment?
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