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 amount the exporter will receive is the face value of the B/A minus the acceptance commission. The face value of the B/A is $3,000,000. The acceptance commission is 1.25%, or $37,500. Therefore, the amount the exporter will receive is $3,000,000 - $37,500 = $2,990,625.

If the Importing Bank's Acceptance Commission Is 1