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Islamic Finance Murabaha and Istisna'a Problem 2 Ahmed runs a grocery store. He needs AED250,000 to buy goods that he will sell over the next

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Problem 2 Ahmed runs a grocery store. He needs AED250,000 to buy goods that he will sell over the next 6 months. He approached an Islamic Bank which proposes him two products: 1. Murabaha a selling price of 300,000 2. A Mudharaba contract whereby the profit will be distributed 40% for the Mudarib and 60% for Rabb al mal Which product should he use if he expects to make a profit of AED120,000? Which product should he use if he expects to make a loss

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