Business and Dealings

Extended warranty

Q: I intend to purchase a car that has a warranty. The dealer offered to extend the warranty by 5 years for an additional amount of R3000. The warranty covers towing and fixing if the car breaks down and replacement of parts. I notice that the policy is with an insurance company. Is this acceptable?

Interest Transactions

Q: Are any of the following Interest Transactions?

  1. If a person says "Buy this item for me when you go to the supermarket, it costs R40,but I will give you R50 tomorrow?
  2. Loan me R40, I will give you R50 tomorrow, the extra R10 is a gift?
  3. A person gives me R50 and says "Go buy this item for me, it costs R40 and you can keep the change?
  4. If the person insists on giving the extra amount even when I tell him that it is Interest, what should I do with that money?

Deriving benefit from the bank

Q: A person chooses to deposit his additional cash in the bank for safe keeping due to safety concerns. He has no intention of loaning these funds to the bank. Will these funds still be treated as a loan to the bank if he has no intention of loaning it to the bank at the time of depositing?