Question
In: Accounting
Abdullah bought a car with a value of 10800 dinars through murabaha, provided that he pays...
Abdullah bought a car with a value of 10800 dinars through murabaha, provided that he pays the price of the car and the profits in 60 monthly installments, each of which is worth 225 dinars. Find the simple annual interest rate؟
a. 0.05
b.0.0625
please make sure to choose the correct answer 100%
Solutions
Expert Solution
Calculation of Simple Annual Interest Rate
Value of Car = 10,800 Dinars
No. of Installments = 60 (5 Years)
Amt. of each Installments = 225 Dinars
Total Amount to be paid as per payment schedule = No. of Installments * Amt. of each Installment = 60 Installments * 225 Dinars = 13500 Dinars
Amt. of Interest = Total Amt. to be paid as per payment schedule - Value of Car = 13,500 Dinars - 10,800 Dinars = 2,700 Dinars
Rate of Interest = (Amt. of Interest / Value of Car) * 100 / 5 Years = (2,700 Dinars / 10,800 Dinars) * 100% / 5 Years
= 5% Per Annum i.e. Option a. 0.05
ekkarill92 answered 2 years agoRelated Solutions
Mr. Yamaguchi bought a car for Rp120,000,000. He pays Rp.20,000,000 at the beginning of the year...
Mr. Yamaguchi bought a car for Rp120,000,000. He
pays
Rp.20,000,000 at the beginning of the year and the
remaining Rp.100,000,000 is paid at each
end of year for 4 years with the same amount of
Rp.25,000,000. In
addition to the Rp25,000,000 payment at the end of each
year, he must
pay 6% interest per annum on the remaining loan.
Make
cash flow in the form of tables and diagrams to
represent the scheme.
True or False: Because Dave did not know that the car he bought was stolen, he...
True or False:
Because Dave did not know that the car he bought was stolen, he
did not warrant title when he resold it to
John.
To recover on warranty, a buyer must reject or revoke any
acceptance of
goods.
D buys a crock pot from Q-Mart. It leaks, soaks an electrical
cord, starts a fire and burns D. D can’t recover from Q-Mart more
than the crock’s replacement cost since his burns weren’t
foreseeable by
Q-Mart.
A written warranty...
Mr. Abdullah attended the genito-urinary clinic of the local hospital. He is seen by the doctor...
Mr. Abdullah attended the genito-urinary clinic of the local
hospital. He is seen by the doctor who informed him that he is HIV
positive. He started a course of treatment. During patient history
taking, Mr. Abdullah shares to the nurse that he married two years
ago and they are expecting they are first born in two months’ time.
Prior to his marriage, Mr. Abdullah had a series of sexual
partners. The nurse counsels him to contact his sexual partners to...
b. An individual obtains a car loan whim pays $30,000. The loan will he paid off...
b. An individual obtains a car loan whim pays $30,000. The loan
will he paid off in 3
years, and payments are made monthly. Interest rate on the loan is
7%, and compounding is monthly.
1. Find the amount of monthly payments to pay the loan off. Provide
a complete
amortization schedule of the loan ( this will entail a long table
containing 37 rows).
2. Present your work in detail and explain. Provide references for
content. (Excel sheet required).
Tony decided to invest in an annuity that he bought from AIG Corp. He bought the...
Tony decided to invest in an annuity that he bought from AIG
Corp. He bought the annuity for $20,000 . The annuity will pay him
$500 per month for 10 years. What is Tony's income per year?
Select one:
a. $6,000
b. $2,000
c. $0
d. $4,000
After this Mr Choden decides he needs a new car, He attends a car fair in...
After this Mr Choden decides he needs a new car, He attends a
car fair in order to buy one and sees a Lexus motor vehicle that he
likes, He contracts with the seller, Fraser, to buy it for
$20,000.
He and Fraser agree on all the terms including agreeing that
Mr Choden will pick up the car from Fraser’s home on Monday night
at which time Mr Choden will pay for the car in full. This is upon
the...
John bought a car three years ago for $20,000 for personal use. In 2002, his car was...
John bought a car three years ago for
$20,000 for personal use. In 2002, his car was totally
destroyed by a tree that fell on the car. John did not
have insurance that covered this event. The car’s fair
market value before the tree came down was $9,000 and it was worth
$0 after the accident. He has no other personal casualty
gains or losses and his AGI for the year was
$50,000. John’s personal casualty loss is $8,000.
True/False and Explain.
. A promissory note was executed by Billy when he bought his house. He financed the...
. A promissory note was executed by Billy when
he bought his house. He financed the purchase with No Fraud
National Bank. This purchase was in 2017 and the note was for 360
equal monthly payments, with a fixed rate of interest, with the
payments due the first of each month, beginning on February 1,
2017. No Fraud sold the note to Investments, Inc on February 15,
2017. Investments, Inc sold the note to We Buy Notes on July 1,...
You have just bought a car. The $50,000 car loan from the finance company involves monthly...
You have just bought a car. The $50,000 car loan from the
finance company involves monthly payments made at the end of the
month, over 60 months. However, at the end of the loan, there is a
lump sum payment, called a balloon payment of $30,000.
Assume the interest rate applicable is 6% p.a. monthly rest
throughout the loan tenure.
(a) Discuss, using time value concepts of PV or FV of single
sums, or multiple sums, etc., how you can...
You have just bought a car. The $50,000 car loan from the finance company involves monthly...
You have just bought a car. The $50,000 car loan from the
finance company involves monthly payments made at the end of the
month, over 60 months. However, at the end of the loan, there is a
lump sum payment, called a balloon payment of $30,000.
Assume the interest rate applicable is 6% p.a. monthly rest
throughout the loan tenure.
(a) Discuss, using time value concepts of PV or FV of single
sums, or multiple sums, etc., how you can...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The requirements for your assignment are: Decode the IP address 172.16.31.255 /20 Determine the following: Subnet...
- Examine the various types of contracts available to Toyota when dealing with international suppliers and advise...
- Problem 10-08 NPVs, IRRs, and MIRRs for Independent Projects Edelman Engineering is considering including two pieces...
- Give an example for market segmentation for a new company developing either products for cats or...
- Suppose you have set a specific goal for the balance in your savings account 12 years...
- Explain in very good details the hardening and procedures of Microsoft Server 2019
- Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $85,300...
ADVERTISEMENT