Yields / interest rates query

Investment Questions and Chats General Investment
#1

Assalamu alaykum. I wanted to ask about calculating our own investment returns etc.

Many times when we calculate how much an investment is worth in present value, we have to apply some sort of interest rate into our calculations. For example the mathematical present value formula itself involves using an a rate of return / interest rate. Is this okay for an investor to do these calculations?

A lot of valuation methods involve the use of a yield / rate of return / interest rate.

Thanks
@ibrahimkhan @Mufti_Billal @Mufti_Faraz_Adam

#2

Wa alaykum salaam,

It depends on the actual underlying investment and the structure. The rates or formulae are not consequential in determining Shariah compliance.