Answer to Question #159358 in Financial Math for Raza

Question

If you go to an Islamic bank and ask for financing for following purposes, which financial product Islamic bank will most likely to use and why?

 

1.      10 years financing to start a new project

2.     5 years financing to construct a house on your land

3.     3 years financing for a heavy duty generator

4.     6 months financing for IPhone 12

Answer 1

The 2nd option is the correct one.

Islamic bank most likely to use 5 years financing to construct a house on your land because this will provide maximum profit for Islamic bank.