profit rate


Senior Member
Quoted from a magazine: "Unlike the case with conventional loans, under Islamic financing the profit rate will not be compounded in the event of late payment and the contracted selling price is the maximum amount that will have to be paid to the bank throughout the financing tenure."
My question is about two terms: profit rate and contracted selling price. Who's profit rate? Contracted selling price of what ?
  • cuchuflete

    Senior Member
    We need a few things to offer useful replies:

    1. More context
    2. Background
    3. The name of the source journal, and a link if it is on line.
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