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Ali is interested in acquiring an apartment which is currently priced at BD500,000. Ali has a balance in his saving account 10% of the current

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Ali is interested in acquiring an apartment which is currently priced at BD500,000. Ali has a balance in his saving account 10% of the current price of the apartment, so he sought a financing arrangement from a local Islamic bank (IB) that offered a Diminishing Musshrakah transactional structure for this arrangement. The IB agreed to extend the financing need by Ali with the following terms and conditions: Apartment cost: BD 500,000 Ali Own's source: 10% Tenor: 100 months Number of Units of the IB's ownership in the apartment: 100 Cost per unit: BD4,500 Monthly Rent of the apartment: 1% Ali agreed to buy one unit from the bank each month. Required Calculate the annual rent due to the bank during the second month. You should write your answer like BDX...X.XXX

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