Neco 2021 Islamic Religious Studies Question 39
Practice objective / multiple choice question 39 from the 2021 Neco Islamic Religious Studies examination.
A merchant agrees to sell a piece of land for \(500{,}000\) Naira. The buyer pays a down‑payment of \(30\%\) of the price and agrees to pay the remaining balance in five equal annual installments. The original contract includes an interest charge of \(10\%\) per annum on the outstanding balance. Under Islamic commercial law, interest (\(riba\)) is prohibited. The parties decide to replace the interest with a profit‑and‑loss sharing arrangement that gives the seller a profit margin of \(20\%\) on the total sale price. Calculate the total amount the buyer must pay under the restructured contract.
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About This Question
This is Neco 2021 Islamic Religious Studies Question 39. It is one of the objective questions from the 2021 Neco Islamic Religious Studies examination.
Difficulty level: Medium .
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