ADIB has Restricted Investment Account (RIA) based on Mudaraba with profit sharing percentages of 12% for RIA and the remaining profit kept by the bank. Hospitality industry financing is one of the investments categorized under RIA contract. ADIB invested AED 158,015 with a reputable hospilatality industry company for one year with the agreement to share the profit of 62% (ADIB) and the remaining profit going to the hospitality industry client. At the end of the year the real estate company earned AED 40,105 as profit. What is the rate of return for RIA holders
ADIB has Restricted Investment Account (RIA) based on Mudaraba with profit sharing percentages of 12% for RIA and the remaining profit kept by the bank. Hospitality industry financing is one of the investments categorized under RIA contract. ADIB invested AED 158,015 with a reputable hospilatality industry company for one year with the agreement to share the profit of 62% (ADIB) and the remaining profit going to the hospitality industry client. At the end of the year the real estate company earned AED 40,105 as profit. What is the rate of return for RIA holders
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ADIB has Restricted Investment Account (RIA) based on Mudaraba with profit sharing percentages of 12% for RIA and the remaining profit kept by the bank. Hospitality industry financing is one of the investments categorized under RIA contract. ADIB invested AED 158,015 with a reputable hospilatality industry company for one year with the agreement to share the profit of 62% (ADIB) and the remaining profit going to the hospitality industry client. At the end of the year the real estate company earned AED 40,105 as profit. What is the
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