he time from acceptance to maturity on a $1,000,000 banker’s acceptance is 90 days. The importer’s bank’s acceptance commission is 2.25% and the market rate for 90‐day B/As is 6.00%. What amount will the exporter receive if he discounts the B/A with the importer’s bank? Answer to 2 decimal places with no , or $ or other symbols.
Solution:-
Assume 360 days in a year.
To Calculate the amount will the exporter receive if he discounts the B/A with the importer’s bank-
Amount = $10,00,000 * [1-{(0.0225 + 0.06) * }]
Amount = $10,00,000 * [1-(0.020625)]
Amount = $10,00,000 * 0.979375
Amount = $9,79,375
Amount will the exporter receive if he discounts the B/A with the importer’s bank is $9,79,375.
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