A Mathematics Model for Determinating the Value of Ijarah Contract

2nd Annual Applied Science and Engineering Conference

工业技术;自然科学

Sumarti, N.^1

Industrial and Financial Mathematics, Institut Teknologi Bandung, Indonesia^1

关键词: Islamic finances;    Mathematical formulation;    Mathematics model;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/288/1/012111/pdf
DOI  :  10.1088/1757-899X/288/1/012111

来源: IOP

【 摘 要 】

The contract of Ijarah ("providing services and goods temporarily for a wage" from Arabic) of Islamic Finance is an ownership of the right to the benefit of using an asset, or the usufruct, for a period of time. This contract is essentially of the same design as an instalment leasing agreement, in which the owner rents or leases his/her property or goods to a lessee for a specified number of periods for a fee. This paper explains the mathematical formulation in the Ijarah contract, which is needed in the simulation of Ijarah based on the various values of the depreciated methods of assets. The formulae are implemented into some examples. The result of the mix Ijarah and other contracts in a housing credit scheme could reveal the real bank's margin, using some assumptions.