1. For the next 20 years, Mr. Mudah plans to invest $650 a month in a stock account earning 6.5 percent and $400 a month in a sukuk account earning 4.5 percent. When he retires in 20 years, Mr. Mudah will combine his money into an Islamic investment account with a return of 5 percent. How much can he withdraw each month during retirement assuming a 25-year withdrawal period?
2. Mr. Rais arranged for a BBA mortgage loan for 65 percent of the $2.5 million purchase price of a home. The monthly payment will be $10,400 and the mortgage term is 30 years. What is the EAR on this loan?