College of Business Management and Accounting

Universiti Tenaga Nasional

Sultan Haji Ahmad Shah Campus

FICB 383: Islamic Banking and Finance

Tutorial Chapter 4:
Debt Financing Activities (Vol. 1)

(1) Define the concept of Murabahah AND Al-Bai Bithaman Ajil.

(2) List FIVE (5) pillars of Murabahah sale AND Al-Bai Bithaman Ajil.

(3) Discuss the application of the Murabahah concept in facilitating financing of trade under
a documentary credit management.

(4) Explain the prerequisite to ensure the validity of the contract of Al-Bai Bithaman Ajil.

(5) Solihin asked Ameer Islamic bank to acquire on his behalf a machine under the concept
of Murabahah with the purchase price of RM60,000 and the profit rate the that this bank
want to charge is 8 percent. Solihin agreed with the condition of the contract and to settle
the full amount at the end of the maturity date i.e. 8 months from signing the contract.
Calculate the selling price and the total profit earn by the Islamic bank.

(6) Safiyah approaches the Islamic bank and applies for financing under the concept of Bai
Bithaman Ajil. Assume the purchase price for the house is RM1 million and profit rate is
10 percent. The period of financing is 17 years and inclusive of 2 years as grace period.
The profit rate for the grace period is 5 percent. Safiyah wants to repay the selling price
in 204 instalments. Calculate the selling price and monthly installments based on the
constant rate of return method with grace period.

NOI
Page 1 of 1