Q. 1. Assume an Islamic bank receives the following general investment deposits with their different tenors and assign the corresponding weightage as in the following table: Deposit Amount $ 90,000 $ 60,000 $ 50,000 Tenor Weightage 3-months 0.3 6-months 0.7 1-year 0.9 Assume also that the mudarabah profit ratio between the depositors and the bank is 75:25 respectively. Given that the bank is making profit of 25% from the above general investment deposits, fill in the box with the correct answers by showing your working. Deposits Weightage Weightage Average Profit Rate $ 90,000 $ 60,000 $ 50,000 0.3 0.7 0.9

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 23QTD
icon
Related questions
Question
Answer the following questions: a. Find the profit of the investment b. Find share of the bank from the profit c. Find the weightage average in the three provided boxes d. Find the profit for each type of deposit e. Find the profit rate for each deposit
Q. 1.
Assume an Islamic bank receives the following general investment deposits with
their different tenors and assign the corresponding weightage as in the following
table:
Deposit Amount
$ 90,000
$ 60,000
$ 50,000
Tenor
Weightage
3-months
0.3
6-months
0.7
1-year
0.9
Assume also that the mudarabah profit ratio between the depositors and the bank is
75:25 respectively. Given that the bank is making profit of 25% from the above
general investment deposits, fill in the box with the correct answers by showing your
working.
Deposits
Profit
Weightage | Weightage
Average
Rate
$ 90,000
$ 60,000
$ 50,000
0.3
0.7
0.9
Transcribed Image Text:Q. 1. Assume an Islamic bank receives the following general investment deposits with their different tenors and assign the corresponding weightage as in the following table: Deposit Amount $ 90,000 $ 60,000 $ 50,000 Tenor Weightage 3-months 0.3 6-months 0.7 1-year 0.9 Assume also that the mudarabah profit ratio between the depositors and the bank is 75:25 respectively. Given that the bank is making profit of 25% from the above general investment deposits, fill in the box with the correct answers by showing your working. Deposits Profit Weightage | Weightage Average Rate $ 90,000 $ 60,000 $ 50,000 0.3 0.7 0.9
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Applying For Credit
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT