Question
Deposits and Investments 1.In the year 2019, Ummah Bank earned annual profit attributable to Unrestricted Mudharabah account after distribution of profit to the bank amounting
Deposits and Investments
1.In the year 2019, Ummah Bank earned annual profit attributable to Unrestricted Mudharabah account after distribution of profit to the bank amounting to $13,200,000. Depositors' profit sharing ratio is 70% and Bank is 30%. The following is information pertaining to deposit types, average balance and the weight used for mudharabah deposit account for the bank in the year 2019.
Investments tenureAverage balanceWeights
$
6 months and less10,000,0000.60
9 months and less25,000,0000.90
12 months and less40,000,0001.00
More than 12 months25,000,0001.25
Three Investors/Depositors:
Zayd $500,000 investment placement for 9 months
Aisyah$250,000 investment placement for more than 12 months
Izzah$1,200,000 investment placement for 6 months
Determine the Weighted Average Balance, Investor's share of profit and investors Rate of Return for Zayd, Aisyah and Izzah for the year 2019.
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