Given the following information compute the annual profit rate: Investment Duration (months) Balance Account 1000 250000 150000 Application Mudaraba 12 24 6 ■ The Unrestricted Investment Accounts (UIA) of an Islamic Bank are based on a Mudaraba agreements with a profit-sharing ratio of 40% (Mudarib) and 60% (Capital Provider). The Islamic bank invested the UIA balance of QR 2.500.000 million in an oil company for one year with the agreement to share the profit with the oil company using the following ratio 55% (Mudarib) and 45% (Capital Provider). At the end of the year the oil company earned QR 125.000 as profit. Profit Distributable 30 23500 1500 Find the income distributable to the UIA holders. Find the UIA holders annual profit rate. Suppose the market annual profit rate for the same type of Unrestricted Investment Accounts is 1.75 %. What would be the new profit-sharing ratio between the Islamic Bank and the Unrestricted Investment Accounts holders.
Given the following information compute the annual profit rate: Investment Duration (months) Balance Account 1000 250000 150000 Application Mudaraba 12 24 6 ■ The Unrestricted Investment Accounts (UIA) of an Islamic Bank are based on a Mudaraba agreements with a profit-sharing ratio of 40% (Mudarib) and 60% (Capital Provider). The Islamic bank invested the UIA balance of QR 2.500.000 million in an oil company for one year with the agreement to share the profit with the oil company using the following ratio 55% (Mudarib) and 45% (Capital Provider). At the end of the year the oil company earned QR 125.000 as profit. Profit Distributable 30 23500 1500 Find the income distributable to the UIA holders. Find the UIA holders annual profit rate. Suppose the market annual profit rate for the same type of Unrestricted Investment Accounts is 1.75 %. What would be the new profit-sharing ratio between the Islamic Bank and the Unrestricted Investment Accounts holders.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Review Annual Profit Rate
Given the following information compute the annual profit rate:
Investment Duration (months)
Balance Account
1000
250000
150000
12
24
6
Profit Distributable
30
23500
1500
Application Mudaraba
The Unre tricted Investment Accounts (UIA) of an Islamic Bank are based on a Mudaraba
agreements with a profit-sharing ratio of 40% (Mudarib) and 60% (Capital Provider). The
Islamic bank invested the UIA balance of QR 2.500.000 million in an oil company for one year
with the agreement to share the profit with the oil company using the following ratio 55%
(Mudarib) and 45% (Capital Provider). At the end of the year the oil company earned QR
125.000 as profit.
Find the income distributable to the UIA holders.
Find the UIA holders annual profit rate.
Suppose the market annual profit rate for the same type of Unrestricted Investment
Accounts is 1.75 %. What would be the new profit-sharing ratio between the Islamic
Bank and the Unrestricted Investment Accounts holders.
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