Two married couple En Salam and Pn Salama are considering to purchase a house in Petaling Jaya. They finally found a double storey house that cost RM 400,000. The couple has made a 30% down payment for the house and will obtain the balance from the bank. The couple is seeking for Islamic home financing and about to make a decision to apply for either BBA home financing or Musharakah Mutanaqisah (MM) home financing. The following information is provided to enable you to answer the following questions (i) to (iii).

a) Tenure of financing 15 years

b) Profit rate for BBA Home Financing 8.5 % p.a

c) Profit sharing between bank and customer (70 %: 30%)

e) Monthly rental for MM Home Financing RM 1, 600

Compute the following: -

(i) Total monthly installment under BBA (3.75 marks)

(ii) Total monthly installment under MM home financing (3.75 marks)

(iii) The difference between BBA and MM monthly installments (3.75 marks)

(iv) Profit earned by the customer in month 1 (3.75 marks)