The time from acceptance to maturity on a $3,000,000 banker's acceptance is 90 days. If the market rate for 90-day B/As is 6.0 percent,calculate the amount the exporter will receive if he discounts the B/A with the importer's bank.

Question

Quizplus · Accepted Answer

The amount received is calculated by discounting the face value of the B/A using the market rate. The discount is $3,000,000 * (6.0%/4) = $45,000. Therefore, the exporter receives $3,000,000 - $45,000 = $2,955,000. However, the closest option is $2,945,625, which suggests a slight miscalculation or rounding in the options provided.

The Time from Acceptance to Maturity on a $3,000,000 Banker's