Suppose Ithmaar Bank has BD20 million for lending for 30 daysto Inter Bank Market. Inter Bank...

 

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Suppose Ithmaar Bank has BD20 million for lending for 30 daysto Inter Bank Market. Inter Bank market refers to a market where like minded banks can mutually lend borrow for immediate needs. In this inter Bank Market, Salam Islamic Bank needs to borrow exactly BD 20 million for 30 days. Both parties agree to 60:40 profit sharing in favor of Ithmaar Bank. Now Al Salam Islamic Bank declares a gross profit of 5% and agrees to pay the same 5% profit to Ithmaar bank for borrowing BD20 million and Ithmaar Bank agrees. Required: How much Ithmaar bank will earn on this Investment? Show your work. Suppose Ithmaar Bank has BD20 million for lending for 30 daysto Inter Bank Market. Inter Bank market refers to a market where like minded banks can mutually lend borrow for immediate needs. In this inter Bank Market, Salam Islamic Bank needs to borrow exactly BD 20 million for 30 days. Both parties agree to 60:40 profit sharing in favor of Ithmaar Bank. Now Al Salam Islamic Bank declares a gross profit of 5% and agrees to pay the same 5% profit to Ithmaar bank for borrowing BD20 million and Ithmaar Bank agrees. Required: How much Ithmaar bank will earn on this Investment? Show your work.

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To calculate the profit earned by Ithmaar Bank on this investment we need to follow these steps Dete... View the full answer