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Mr . Shaaz has 2 Million dollars and wants to invest in JP morgan to get semi annual return. The customer relationship manager tells him

Mr. Shaaz has 2 Million dollars and wants to invest in JP morgan to get semi annual return. The customer relationship manager tells him to that bank offers 7% interest annually compounded for the investment equal to and above 2.5 Million dollars and 5% on the investment below it. Mr. Shaaz's friend Mr. Shaheer offers 0.6 million dollars along with shaaz to invest so they could get better returns . they invest their total money in term deposit which promises 7% annual interest rate with semi annual profit distribution. At the end of 6 months they recieve profit of 91,000 dollars. 10% of the profit is deducted from profit as withholding tax. Shaaz claims that since shaheer has invested 23.077%(600,000 dollars) of the total amount therefore he should recieve the same percentage of the remaining profit which is 81,900$ which amounts to 18,900(81,900*23.077%). Do u think mr shaaz is right? If yes then why and no then what should be the actual profit of me shaheer after paying 10% withholding tax on his share of profit?

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