Neco 2025 Islamic Religious Studies Question 22
Practice objective / multiple choice question 22 from the 2025 Neco Islamic Religious Studies examination.
Two Islamic finance investment schemes are offered to a client with an initial capital of \(\text{₦}500{,}000\).\n\nScheme A (Murabaha): The seller adds a profit margin of \(12\%\) on the cost price, payable at the end of two years. Zakat of \(2.5\%\) is levied on the profit earned.\n\nScheme B (Mudarabah): The expected gross profit is \(20\%\) per year, shared \(70\%\) to the investor and \(30\%\) to the bank. Zakat of \(2.5\%\) is levied on the investor's profit each year.\n\nAssuming profits are realised at the end of each year and there is no compounding of profit, which scheme yields a higher net amount for the investor after two years? State the scheme (A or B) and the net amount.
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About This Question
This is Neco 2025 Islamic Religious Studies Question 22. It is one of the objective questions from the 2025 Neco Islamic Religious Studies examination.
Difficulty level: Hard .
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