MUHAMMAD ALIF BIN NORDIN (2020880616) MBA1194E

(A)

a) Literally
 The word istisna' derived from the Arabic verb "istasna'a" which is mean to request someone to
manufacture an asset.

b) Technically
 Bay' al-istisna' is defined as a contractual agreement with manufacturer to produce items with
specified description at a determined price and manufactured from his own materials with his
own effort.

(B)

1. Amount of Islamic Accepted Bill (LAB)

S * P * 1 = FV (1 + (r * 1) * 365)

=650000(1 + (0.09 * 300y * 365))

= RM 698 082.19

2. Selling price of Islamic Accepted Bill sold

S * P * 2 = S * P * 1(1 - (ri) / 365)

=698 * 082.19(1 - (0.13 * 210) / 365)) = RM 645 869.47

3. Murabahah Working Capital Financing profit due

Profit SPI-FV
=698 082.19-650 000
=RM 48 082 1