Ali is interested in acquiring an apartment which is currently priced at BD600,000. Ali has a balance in his saving account of 40% 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 600,000

Ali owns source: 40%

Tenor: 120 months

Number of Units of the IBs ownership in the apartment: 120

Cost per unit: BD3,000

Monthly Rent of the apartment: 1.5%

Ali agreed to buy one unit from the bank each month.

Required:

Calculate the annual rent due to the bank during the third month. You should write your answer like BDx...x.xxx

Answer: