Logarithm and Murabaha: Difference between pages

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1.
''Islamic finance''.
The mathematical function which is the inverse of "raising to the power of".
Usually abbreviated to "log".


For example working with logarithms to the base 10:
Murabaha is a sharia-compliant financing arrangement under which a bank buys an asset and sells it on to the customer at an agreed mark-up.  The customer, who could not otherwise afford to buy the asset, pays in instalments.


log<sub>10</sub>(100) = 2


And 10<sup>2</sup> = 100
Murabaha is sometimes known as 'cost plus financing'.


More generally with logarithms to the base n:
log<sub>n</sub>(x) = the power which, when 'n' is raised to it = x
For example 10<sup>(log<sub>10</sub>(x))</sup> = x
And generally n<sup>(log<sub>n</sub>(x))</sup> = x
2.
The logarithm to the base 10.




== See also ==
== See also ==
* [[Natural logarithm]]
* [[Islamic finance]]
* [[Sukuk]]
*[[Reverse murabaha]]

Revision as of 13:54, 26 June 2015

Islamic finance.

Murabaha is a sharia-compliant financing arrangement under which a bank buys an asset and sells it on to the customer at an agreed mark-up. The customer, who could not otherwise afford to buy the asset, pays in instalments.


Murabaha is sometimes known as 'cost plus financing'.


See also

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