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Transactions Interest

Is markup the same as Interest?

Question:- Is it counted as interest to buy things on installments with a markup? A bank or a company sells its products with a 10% profit margin or any other percentage. They take some money as down payment, and the rest is paid in installments. The sum of installments is larger than the original price.

Answer:- Mark up is not the same as interest. It is permissible to buy something on installments with mark up with the condition that the number of installments and the price of each installment is agreed upon at the time of the transaction.