The relationship between the Sharia'a Islamic Bank and its investment account holders is governed by the Mudaraba contract, as shown in Table 4.1. Table 4.1 Sharia'a Islamic Bank: Mudaraba accounts...

Extracted text: The relationship between the Sharia'a Islamic Bank and its investment account holders is governed by the Mudaraba contract, as shown in Table 4.1. Table 4.1 Sharia'a Islamic Bank: Mudaraba accounts Average funds available for investment Dinars Dinars Investment rate Shareholders 130,000,000 100% Investment Accounts: One Year 150,000,000 450,000,000 700,000,000 90% Investment Accounts: Six Months 80% 1300,000,000 1430,000,000 Mudarib 15% Investment Savings Accounts* Total funds available for investment 60% Profit-sharing ratio: Investment Accounts: One Year Depositors 85% Investment Accounts: Six Months Investment Savings Accounts Income for allocation 20% 80% 30% 70% Income to be allocated 75,000,000 * These are investment accounts for short periods Case Questions: 1. Calculate the profit allocated to shareholders and to each class of profit-sharing accounts before and after the Mudarib share has been paid. 2.Calculate the rate of return for shareholders and each class of investment account after the Mudarib share has been paid.