Islamic Formula of Future Value of Asset
Increasing price of an asset being sold on credit is a common practice of Islamic Financial Institutions (IFIs) and certain retailers using formulas of compound interest (Riba) and speculation (Maysir). As Islam prohibits both of these concepts, relevant literature wa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Università degli Studi di Torino
2015-12-01
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| Series: | European Journal of Islamic Finance |
| Subjects: | |
| Online Access: | https://www.ojs.unito.it/index.php/EJIF/article/view/1075 |
| _version_ | 1818898590346510336 |
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| author | Imran Haider Naqvi Zainab Naveed |
| author_facet | Imran Haider Naqvi Zainab Naveed |
| author_sort | Imran Haider Naqvi |
| collection | DOAJ |
| description | Increasing price of an asset being sold on credit is a common practice of Islamic Financial Institutions (IFIs) and certain retailers using formulas of compound interest (Riba) and speculation (Maysir). As Islam prohibits both of these concepts, relevant literature was qualitatively probed to find Shariahcompliant mechanism for setting future value of an asset being sold on credit negating Riba and Maysir. The study thus extracted a formula from authentic Shariah sources and presented it quantitatively as an alternate to abandon the conventional formulas of interest and speculation. It further contributed recommendations for credit sellers and buyers in the light of Shariah principles and possible future research. |
| first_indexed | 2024-12-19T19:34:29Z |
| format | Article |
| id | doaj.art-3f818c4e5e1744ec82e4d9d18b059718 |
| institution | Directory Open Access Journal |
| issn | 2421-2172 2421-2172 |
| language | English |
| last_indexed | 2024-12-19T19:34:29Z |
| publishDate | 2015-12-01 |
| publisher | Università degli Studi di Torino |
| record_format | Article |
| series | European Journal of Islamic Finance |
| spelling | doaj.art-3f818c4e5e1744ec82e4d9d18b0597182022-12-21T20:08:30ZengUniversità degli Studi di TorinoEuropean Journal of Islamic Finance2421-21722421-21722015-12-012318https://doi.org/10.13135/2421-2172/1075Islamic Formula of Future Value of AssetImran Haider Naqvi0Zainab Naveed1Center of Islamic Finance, COMSATS Institute of Information Technology, LahoreCenter of Islamic Finance, COMSATS Institute of Information Technology, LahoreIncreasing price of an asset being sold on credit is a common practice of Islamic Financial Institutions (IFIs) and certain retailers using formulas of compound interest (Riba) and speculation (Maysir). As Islam prohibits both of these concepts, relevant literature was qualitatively probed to find Shariahcompliant mechanism for setting future value of an asset being sold on credit negating Riba and Maysir. The study thus extracted a formula from authentic Shariah sources and presented it quantitatively as an alternate to abandon the conventional formulas of interest and speculation. It further contributed recommendations for credit sellers and buyers in the light of Shariah principles and possible future research.https://www.ojs.unito.it/index.php/EJIF/article/view/1075credit salemaysirribafuture valueinflation |
| spellingShingle | Imran Haider Naqvi Zainab Naveed Islamic Formula of Future Value of Asset European Journal of Islamic Finance credit sale maysir riba future value inflation |
| title | Islamic Formula of Future Value of Asset |
| title_full | Islamic Formula of Future Value of Asset |
| title_fullStr | Islamic Formula of Future Value of Asset |
| title_full_unstemmed | Islamic Formula of Future Value of Asset |
| title_short | Islamic Formula of Future Value of Asset |
| title_sort | islamic formula of future value of asset |
| topic | credit sale maysir riba future value inflation |
| url | https://www.ojs.unito.it/index.php/EJIF/article/view/1075 |
| work_keys_str_mv | AT imranhaidernaqvi islamicformulaoffuturevalueofasset AT zainabnaveed islamicformulaoffuturevalueofasset |