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14. Mansour owns a land in Dubai, UAE and approaches an Dubai Islamic Bank (DIB) for financing the construction of his house by Trojan. Mansour
14. Mansour owns a land in Dubai, UAE and approaches an Dubai Islamic Bank (DIB) for financing the construction of his house by Trojan. Mansour and the IHC sign an Istisna' contract and then the IHC signs a parallel Istisna' with Trojan. The details included in the Istisna' and parallel Istisna' contracts are: - Construction cost of the house (Dirham) AED2,500,000 - Financing period 10 years - Client repayment in quarterly instalments - DIB profit margin 5% of the purchase price - Trojan will take 10 months to build the house - Trojan profit margin is 7% of construction cost - Trojan requires down payment of 25% of construction cost at contract - Payment balance to Trojan will be made in ten equal instalments over the 10 months of construction. a. What is the price at which the DIB will buy the house from Trojan? b. What is the price at which the DIB will sell the house to Mansour? c. How much down payment will the DIB pay to Trojan? d. How much will be the monthly instalment paid during the construction period to Trojan? e. What will be the instal ment amount that Mansour will pay each quarter to the DIB over the 10 years? 14. Mansour owns a land in Dubai, UAE and approaches an Dubai Islamic Bank (DIB) for financing the construction of his house by Trojan. Mansour and the IHC sign an Istisna' contract and then the IHC signs a parallel Istisna' with Trojan. The details included in the Istisna' and parallel Istisna' contracts are: - Construction cost of the house (Dirham) AED2,500,000 - Financing period 10 years - Client repayment in quarterly instalments - DIB profit margin 5% of the purchase price - Trojan will take 10 months to build the house - Trojan profit margin is 7% of construction cost - Trojan requires down payment of 25% of construction cost at contract - Payment balance to Trojan will be made in ten equal instalments over the 10 months of construction. a. What is the price at which the DIB will buy the house from Trojan? b. What is the price at which the DIB will sell the house to Mansour? c. How much down payment will the DIB pay to Trojan? d. How much will be the monthly instalment paid during the construction period to Trojan? e. What will be the instal ment amount that Mansour will pay each quarter to the DIB over the 10 years
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