Question

CASE :3 The Mudarib borrows 100 capital from the bank which he invests into the project. This loan must be repaid at the maturity of the project whether profits or losses are made. The bank contributes capital of 100. No other capital sources are used. PLS is agreed at a ratio of 50/50.Half of the Profits are paid to the Mudarib as a reward for the successful operation of the business. The balance of any profit is paid to the other partner(s) in the scheme for capital contribution. Provide the solutions to two potential outcomes: Profits of 20 are made Losses of 20 are made

Answer 1

Hey mate, hope you are living well.

The Mudarib borrows 100 capital from the bank which he invests into the project. This loan must be repaid at the maturity of the project whether profits or losses are made. The bank contributes capital of 100. No other capital sources are used. PLS is agreed at a ratio of 50/50. Profits are paid to the