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Bank Shariah provides Musharaka mutanaqisah financing to Moonway Corporation for a house development project amounting to $10,000,000. This amount represents 60% of the total cost
Bank Shariah provides Musharaka mutanaqisah financing to Moonway Corporation for a house development project amounting to $10,000,000. This amount represents 60% of the total cost of the project. The term of financing is for 5 years and the partner is required to pay back the bank in 5 equal installments yearly. The profit-sharing ratio is agreed at 70:30 (Bank: Partner) and assumed to be constant for the first 2 years of the project. For the next three years, the profit-sharing ratio is 20: 80 . The profits or losses from the project as disclosed by the partner are as follows: How much is the total profit/loss allocated to the partner? (40,200) (24,000) 24,000 (20,400) 20,400 (42.000)
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