please help me Bank Shari'ah provides Musharaka mutanaqisah financing to Moonway Corporation for a house development projectamounting to $10,000,000. This amount represents 60% of the total cost of the project. The term of financing is for 5 yearsand the partner is required to pay back the bank in 5 equal installments yearly. The profit-sharing ratio is agreed at 70:30(Bank: Partner) and assumed to be constant for the first 2 years of the project. For the next three years, the profit-sharingratio is 20: 80. The profits or losses from the project as disclosed by the partner are as follows:YearProfit/(Loss)(1, 200,000)12(1, 200,000)32,600,0001,500,00051,300,000How much is the total profit/loss allocated to the partner?Ⓒ (40,200)O (24,000)24,000O (20,400)20,400O (42,000)4

(24,000) is the correct solution

Bank Shari'ah provides Musharaka mutanaqisah financing to Moonway Corporation for a house development: amounting to $10,000,000. This amount represents 60% of the total cost of the project. The term of financing is for and the partner is required to pay back the bank in 5 equal installments yearly. The profit-sharing ratio is agreed (Bank: Partner) and assumed to be constant for the first 2 years of the project. For the next three years, the profit ratio is 20: 80. The profits or losses from the project as disclosed by the partner are as follows: Year Profit/(Loss) 1 (1,200,000) (1,200,000) 2,600,000 1,500,000 2 3 4 5 1,300,000 How much is the total profit/loss allocated to the partner?

Bank Shari'ah provides Musharaka mutanaqisah financing to Moonway Corporation for a house development: amounting to $10,000,000. This amount represents 60% of the total cost of the project. The term of financing is for and the partner is required to pay back the bank in 5 equal installments yearly. The profit-sharing ratio is agreed (Bank: Partner) and assumed to be constant for the first 2 years of the project. For the next three years, the profit ratio is 20: 80. The profits or losses from the project as disclosed by the partner are as follows: Year Profit/(Loss) 1 (1,200,000) (1,200,000) 2,600,000 1,500,000 2 3 4 5 1,300,000 How much is the total profit/loss allocated to the partner?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

See similar textbooks

Similar questions

Cloud Venture has a line of credit with a local bank of $75,000. The loan agreement calls for interest of 6 percent with a compensating balance requirement of 3 percent that is based on the total amount borrowed. What is the effective interest rate if the firm needs $58,000 for one year to finance a fixed asset purchase?
e investment group borrows $20,000 from a CRDB bank at a 9% annual interest rate in order to buy a machine. In addition. The company pays a $200 loan origination fee when the loan commences. The CRDB bank offers two repayment plans, one with equal payments made at the end of every year for the next five years and the other with a single payment made after the loan period of five years. a)Draw cash flow diagram. b)Describe the repayment plans as required by the CRDB Bank. please do not provide handwritten solution
The UNICROM company asks the bank for a loan to purchase machinery. The amount granted is $ 40,000.00 with a nominal rate of 42% per year. The company agrees with the bank to pay in 12 installments with constant amortization which are paid monthly. Calculate the value of the 3rd installment and the value of the constant amortization. a3rd installment: 4200 and Amortization: 3333 b.3rd installment: 4500 and Amortization: 3000 c.3rd installment: 4200 and Amortization: 4000 d.3rd installment: 4500 and Amortization: 3333 e3rd installment: 4383 and Amortization: 3333 With clear resolution please
Carson City Corp. arranged a $9,000,000 revolving credit agreement with a group of banks. The firm paid an annual commitment fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 9% during the year. If the firm borrowed $6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver? a. $612,750 b. $645,000 c. $677,250 d. $711,113 e. $746,668
A borrows $12,000 for 10 years and agree to make semiannual payments of $1,000. The lender receives 12% convertible semiannually on the investment each year for the first 5 years and 10% convertible semiannually on the investment each year for the second 5 years. The balance of each payment is invested in a sinking fund earning 8% convertible semiannually. Find the amount by which the sinking fund is short of repaying the loan at the end of the 10 years.
On January 1, 20x1, Lawrence Lenders loaned $9.6 million to Wilkins Food Products, Inc. to purchase a frozen food storage facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the following for Lawrence Lenders: 1. Prepare the journal entry for lending the funds on January 1, 20x1. 2. Prepare an amortization schedule for the three-year term of the installment note. 3. Prepare the journal entry for the first installment payment received on December 31, 20x1. 4. Prepare the journal entry for the third installment payment received on December 31, 20x3. Complete this question by entering your answers in the tabs below. Req 2 Saved Req 1 3 and 4 2021 Prepare an amortization schedule for the three-year term of the installment note. (Enter your answers in whole dollars.) Dec. 31 Cash…
On January 1, 20x1, Lawrence Lenders loaned $8.4 million to Wilkins Food Products, Inc. to purchase a frozen food storage facility. Wilkins signed a three-year, 4% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the following for Lawrence Lenders:1. Prepare the journal entry for lending the funds on January 1, 20x1.2. Prepare an amortization schedule for the three-year term of the installment note.3. Prepare the journal entry for the first installment payment received on December 31, 20x1.4. Prepare the journal entry for the third installment payment received on December 31, 20x3.
BroadStreet Bank has just been given a $10,000,000, 5 year CD deposit by the local municipality. The bank has agreed to pay 8%, compounded annually on this deposit. The bank wishes to choose one debt investment to cover this deposit, so that they have earnings from this investment to just cover the interest and CD principal when it comes due in 5 years. They are looking at the following 3 possibilities for investment BondMaturityCouponYTM Duration 0.00% 8.00%5.00 7.90% 8.00%5.00 17.15% 8.00%5.00 Show that each of three investment will cover the future payout required by the CD, even if market rates increase or drop by 2 % by the end of 5 years 567 123
prepare an amortization schedule showing the first four payments for each loan. Large semitrailer trucks cost $110,000 each. Ace Trucking buys such a truck and agrees to pay for it by a loan that will be amortized with 9 semiannual payments at 8% compounded semiannually.
Ranger Enterprises is considering pledging its receivables to finance a needed increase in working capital. Its commercial bank will lend 65 percent of the pledged receivables at 1.5 percentage points above the prime rate, which is currently 9 percent. In addition, the bank charges a service fee equal to 2 percent of the pledged receivables. Both interest and the service fee are payable at the end of the borrowing period. Ranger’s average collection period is 50 days, and it has receivables totaling $6 million that the bank has indicated are acceptable as collateral. Calculate the annual financing cost for the pledged receivables. Assume that there are 365 days per year. Round your answer to two decimal places. %
Miller borrows $310,000 to be paid off in three years. The loan payments are semiannual with the first payment due in six months, and interest is at 10%. What is the amount of each payment? (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.) Multiple Choice $61,075 O $77,908 $93,000 $77,092 tv A O APR 6.
A company received a 10-year $10 million loan commitment from a bank at a fixed rate of 6.50%. The up-front commitment fee is 30 basis points and the unused portion of the loan is charged 12 basis points. The bank borrows a total of $5 million at the beginning of the year and none thereafter. What is the net cost of borrowing the $5 million? b) Explain how a letter of credit is created in international trade and its conversion to a banker's acceptance (BA).