If the 90-Day B/A Rates Are 5%,determine the Amount the Exporter

question 4

Multiple Choice

If the 90-day B/A rates are 5%,determine the amount the exporter will receive if he holds the B/A until maturity.(Round your final value to nearest whole dollar.Assume 360 days in a year.)

• A) $2,800,000.
• B) $2,807,018.
• C) $2,842,640.
• D) $3,000,000.

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Definitions:

Economic Profits

The remaining amount after deducting total expenses from the total income, taking into account all direct and indirect costs.

Profit Maximizes

A strategy or objective of businesses to achieve the highest possible profit, where total revenue exceeds total costs by the largest margin.

MR

Short for Marginal Revenue, it represents the additional income earned from selling one more unit of a good or service.

MC

Refers to Marginal Cost, the increase in total cost that arises from producing an additional unit of output.