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Provide the solutions to two potential outcomes

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The Mudarib acquires 100 capital through a third party Mudaraba. The Mudarib invests 100 of his own capital into the project. The bank contributes capital of 100. No other capital sources are used. PLS is agreed at a ratio of 33/33/33. 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.

Provide the solutions to two potential outcomes:

a. Profits of 30 are made

b. Losses of 30 are made

Reference no: EM132615861

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