A company enters into an Islamic finance contract,where the bank buys good worth $500,000 with an agreement to resell the goods to the company on credit with a 20% markup price.What is the final cost to the company?

Question

Quizplus · Accepted Answer

The final cost to the company is $600,000 because the bank adds a 20% markup to the original $500,000 cost, resulting in $500,000 + ($500,000 * 0.20) = $600,000.

A Company Enters into an Islamic Finance Contract,where the Bank