Determine the weighted average balance

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Question - In the year 2019, Ummah Bank earned annual profit attributable to Unrestricted Mudharabah account after distribution of profit to the bank amounting to $13,200,000. Depositors' profit sharing ratio is 70% and Bank is 30%. The following is information pertaining to deposit types, average balance and the weight used for mudharabah deposit account for the bank in the year 2019.

Investments tenure

Average balance $

Weights

6 months and less

10,000,000

0.60

9 months and less

25,000,000

0.90

12 months and less

40,000,000

1.00

More than 12 months

25,000,000

1.25

Three Investors/Depositors:

Zayd $500,000 investment placement for 9 months

Aisyah $250,000 investment placement for more than 12 months

Izzah $1,200,000 investment placement for 6 months

Required - Determine the Weighted Average Balance, Investor's share of profit and investors Rate of Return for Zayd, Aisyah and Izzah for the year 2019.

Reference no: EM132781963

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