Calculate the monthly payments due to kuwait islamic bank

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Reference no: EM132961626

Problem 1: Yield on ___________ are typically higher than government securities. These flexible instruments may help issuers to meet their short-term funding needs in that the issuers may roll over the debt by issuing new papers to redeem outstanding ones.

A) Commercial Paper

B) Negotiable Certificate of Deposit

C) Treasury Bills

D) Repurchase Agreement

Problem 2: Islamic banks also provide automobile financing facilities similar to the conventional hire purchase. The following information is an example of car financing provided by Kuwait Islamic Bank;

Concept : Al-Ijarah Thumma Al-Bai

Tenure : 9 years

Bank's profit rate : 3.3% per annum

Amount to be financed : RM150,000

Calculate the monthly payments due to Kuwait Islamic Bank.

A) RM4,550.00

B) RM1,388.90

C) RM1,945.00

D) RM1,801.40

Problem 3: Which of the following is NOT the money market instrument?

A) Banker's Acceptance

B) Factoring

C) Repurchase Agreement

D) Commercial Paper

Reference no: EM132961626

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