The Time from Acceptance to Maturity on a $2,000,000 Banker's

question 6

Essay

The time from acceptance to maturity on a $2,000,000 banker's acceptance is 90 days.The importing bank's acceptance commission is 1.25 percent and the market rate for 90-day B/As is 6 percent.
Determine the amount the exporter will receive if he discounts the B/A with the importer's bank.

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Definitions:

Conservation of Mass

A principle stating that mass is neither created nor destroyed in a closed system through physical and chemical changes.

Conservation of Volume

The understanding that the quantity of a substance remains the same despite changes in its shape or container.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developed during early infancy.

Conservation

The principle of maintaining the integrity of the environment and natural resources.