If the importing bank's acceptance commission is 1.25 percent,determine the amount the exporter will receive if he holds the B/A until maturity.

Question

Quizplus · Accepted Answer

The exporter will receive the face value of the B/A minus the acceptance commission. If the face value is $3,000,000, the commission is 1.25% of $3,000,000, which is $37,500. Therefore, the exporter will receive $3,000,000 - $37,500 = $2,962,500. However, the closest option to this calculation is $2,990,625, which suggests a possible error in the problem setup or options.

If the Importing Bank's Acceptance Commission Is 1