Bank Sohar provides a financing facility based on ‏murabahah to the Purchase Orderer principles to ‏Ahmad for the purpose of house purchase. ‏The financing is amounting to OR 55000 at a ‏constant rate of return 3% for a period of 8 years. ‏Calculate the annual installment payment.

Bank Sohar provides a financing facility based on ‏murabahah to the Purchase Orderer principles to ‏Ahmad for the purpose of house purchase. ‏The financing is amounting to OR 55000 at a ‏constant rate of return 3% for a period of 8 years. ‏Calculate the annual installment payment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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Concept explainers

Calculating the Return On A Loan

Question

‏Bank Sohar provides a financing facility based on
‏murabahah to the Purchase Orderer principles to
‏Ahmad for the purpose of house purchase.
‏The financing is amounting to OR 55000 at a
‏constant rate of return 3% for a period of 8 years.
‏Calculate the annual installment payment.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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