PART 1: CALCULATION QUESTIONS (10 marks)

Direction: Answer the following question by using the required proforma and formulas:

Fatma wants to start a daycare business and she has decided to get Mudaraba financing of (Omrani rial) OMR 500,000 from OMran Islamic Bank . The annual sales revenue expected from the business from the business from the business is OMR 120,000 and the expected operational expenses are OMR 50,000 per annum is deducted to arrive at the net profit. Each year half of the net profit is used to repay the capital of the bank . The remaining half is distributed as per the pre agreed percentage of profit sharing between the Bank and Fatma, that is 70:30 . Calculate how much the bank will be paid as capital repayment and as a profit percentage. And how much Fatma will get as a profit.