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Section 1 (1 pts) 1) The profit sharing ratio between Islamic bank and the investment account holders (assume only one investment account) is 3/4 for
Section 1 (1 pts) 1) The profit sharing ratio between Islamic bank and the investment account holders (assume only one investment account) is 3/4 for investment account holder and 1/4 of Islamic banks. Islamic banks act as a Mudarib for fund management. Unrestricted Investment Accounts (UIA) is 70% of total investors' deposits. The Mudaraba contract states that Islamic bank can only deduct the operating expenses before distributing the income to the investors and Mudarib. The total revenue and expenses of Islamic bank is $ 120,000 and $ 110,000 respectively. The deductible operating expenses are 65% of total expenses. How much is the share of the UIA? $ 71,500 $ 25,462.5 $ 33,950 D $ 48,500
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