Daily product combines amount and time. Rs. 100,000 invested for 30 days produces 3,000,000 rupee-days.
Term explanation: Daily product: amount invested × number of days that amount remained in the joint pool.
The purpose is not to trace every rupee into one particular transaction. It is to give a consistent method for measuring how much capital remained in the joint pool and for how long.
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Running Partnership (مشاركة) and Daily Products
Daily product combines amount and time. Rs. 100,000 invested for 30 days produces 3,000,000 rupee-days.
Term explanation: Daily product: amount invested × number of days that amount remained in the joint pool.
The purpose is not to trace every rupee into one particular transaction. It is to give a consistent method for measuring how much capital remained in the joint pool and for how long.