A bank customer requests financing for five air conditioning units (A/Cs) on a three-year lease from the bank. The bank buys the assets and leases them for three years. Financial details US$ Cost of A/Cs 10,000 Five-year life – annual depreciation 2000 p.a. Insurance (Takaful) 600 p.a. Profit required by the bank Year 1 900 Year 2 700 Year 3 500
Use proper method to find the yearly Ijara rental the bank will charge in order to cover the costs and to make the required profit?