Question

Calculate the monthly payment plan for Home purchase on the basis of Diminishing Musharakah (Shirkatul Maal): • Price of House: Rs 2. 0 Million Bank Financing: 80 % (Full payment is made in one tranche) • Tenure: 10 Years Rental (Return r

D M - Home Exercise - Purchase Finance by an Islamic bank

 

Calculate the monthly payment plan for Home purchase on the basis of Diminishing Musharakah (Shirkatul Maal):  

       Price of House: Rs         2. 0 Million 
Bank Financing:             80 % (Full payment is made in one tranche)

       Tenure:             10 Years 
Rental (Return rate equivalent to) :           12% p.a. (of investment)

       Bank’s Share:  Rs. 1600000

       Client’s Share: Rs. 400000

       No of Bank’s Units: 120 (equals to number of Months)

       Price per Unit: Rs.          13,333.33          

       Rent per Unit: Rs. 1600

 [(outstanding investment * rate) / 12 / No. of outstanding units]

Month

Unit Price

Rent per month 

Total Monthly Payment

Units balance

Investment Balance

0

-

-

-

120

1,600,000

1

13,333.33

16000

29333.33

119

1,586,666.66

2

13,333.33

15866.66

29199.99

118

1,573,333.33

3

13,333.33

15733.33

29066.6633

117

1,560,000

4

13,333.33

15600

28933.33

116

1,546,666.66

5

13,333.33

15466.66

28799.99

115

1,533,333.33

6 to 115

xxxx

xxxx

xxxx

xxxx

xxxx

116

13,333.33

666.66

13999.99

4

53333.33

117

13,333.33

533.33

13866.66

3

39999.99

118

13,333.33

399.99

13733.32

2

26666.66

119

13,333.33

266.66

13599.99

1

13333.33

120

13,333.33

133.33

13466.66

-

0.00

 


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Answer #1

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       Bank’s Share:  Rs. 1600000

       Client’s Share: Rs. 400000

       No of Bank’s Units: 120 (equals to number of Months)

       Price per Unit: Rs.          13,333.33          

       Rent per Unit: Rs. 1600

 [(outstanding investment * rate) / 12 / No. of outstanding units]

Month

Unit Price

Rent per month 

Total Monthly Payment

Units balance

Investment Balance

0

-

-

-

120

1,600,000

1

13,333.33

16000

29333.33

119

1,586,666.66

2

13,333.33

15866.66

29199.99

118

1,573,333.33

3

13,333.33

15733.33

29066.6633

117

1,560,000

4

13,333.33

15600

28933.33

116

1,546,666.66

5

13,333.33

15466.66

28799.99

115

1,533,333.33

6 to 115

xxxx

xxxx

xxxx

xxxx

xxxx

116

13,333.33

666.66

13999.99

4

53333.33

117

13,333.33

533.33

13866.66

3

39999.99

118

13,333.33

399.99

13733.32

2

26666.66

119

13,333.33

266.66

13599.99

1

13333.33

120

13,333.33

133.33

13466.66

-

0.00

 


source: from classroom
answered by: Faisal Razim
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Answer #2

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       Bank’s Share:  Rs. 1600000

       Client’s Share: Rs. 400000

       No of Bank’s Units: 120 (equals to number of Months)

       Price per Unit: Rs.          13,333.33          

       Rent per Unit: Rs. 1600

 [(outstanding investment * rate) / 12 / No. of outstanding units]

Month

Unit Price

Rent per month 

Total Monthly Payment

Units balance

Investment Balance

0

-

-

-

120

1,600,000

1

13,333.33

16000

29333.33

119

1,586,666.66

2

13,333.33

15866.66

29199.99

118

1,573,333.33

3

13,333.33

15733.33

29066.6633

117

1,560,000

4

13,333.33

15600

28933.33

116

1,546,666.66

5

13,333.33

15466.66

28799.99

115

1,533,333.33

6 to 115

xxxx

xxxx

xxxx

xxxx

xxxx

116

13,333.33

666.66

13999.99

4

53333.33

117

13,333.33

533.33

13866.66

3

39999.99

118

13,333.33

399.99

13733.32

2

26666.66

119

13,333.33

266.66

13599.99

1

13333.33

120

13,333.33

133.33

13466.66

-

0.00

 


answered by: Faisal Razim
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Calculate the monthly payment plan for Home purchase on the basis of Diminishing Musharakah (Shirkatul Maal): • Price of House: Rs 2. 0 Million Bank Financing: 80 % (Full payment is made in one tranche) • Tenure: 10 Years Rental (Return r
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