A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project
Science Journal of Applied Mathematics and Statistics
Volume 2, Issue 6, December 2014, Pages: 116-121
Received: Dec. 12, 2014;
Accepted: Dec. 22, 2014;
Published: Dec. 31, 2014
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Farhana Syed Ahmad, School of Mathematical Sciences, Universiti Sains Malaysia, 11800 USM, Pulau Pinang, Malaysia
Shamsul Rijal Muhammad Sabri, School of Mathematical Sciences, Universiti Sains Malaysia, 11800 USM, Pulau Pinang, Malaysia
The paper observed the impact of the profit rate and failure rate to the profit of Musharakah Mutanaqisah Homeownership Partnership (MMP) that exercise in local Islamic Bank in Malaysia while the probability of the housing project’s failure is considered into this facility. The retrospective method is a retrospective method of calculating the outstanding balance in actuarial mathematics. Moreover, this study derived a probability of abandoned housing project equations implementing from the actuarial mathematics. The failure rate is assumed to be exponentially distributed. The profit will varies due to the changes of variables like profit rate, failure rate and tenure. This study also presented the intention of IB in bearing the losses of MMP when abandoned housing project occurred.
Farhana Syed Ahmad,
Shamsul Rijal Muhammad Sabri,
A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project, Science Journal of Applied Mathematics and Statistics.
Vol. 2, No. 6,
2014, pp. 116-121.
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