Assume the following:
• A company is importing and selling Mercedes cars.
• An Islamic bank invests US$7 million for an 70% profitshare.
• An investor invests US$3 million for a 30% profit share.
• The investor is to be paid a 15% management fee as percentage ofprofit after expenses.
Assume:
Sale proceeds = US$12, 400, 000
Expenses = US$200, 000
Requirement:
Calculate total return to the bank and total return to theinvestor.
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