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The Time from Acceptance to Maturity on a $1,000,000 Banker's

question 7

Essay

The time from acceptance to maturity on a $1,000,000 banker's acceptance is 90 days.The importing bank's acceptance commission is 3½ percent and that the market rate for 90-day B/As is 5 percent.
Determine the amount the exporter will receive if he discounts the B/A with the importer's bank.


Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, and absorbed by plants in photosynthesis.

pH

A numerical scale used to specify the acidity or basicity of an aqueous solution, where 7 is neutral, values less than 7 are acidic, and values greater than 7 are basic or alkaline.

Expiratory Reserve Volume

The additional amount of air that can be forcefully exhaled after a normal exhalation, used to measure lung function.

Inspiratory Reserve Volume

The additional amount of air that can be inhaled after a normal inhalation, contributing to the total lung capacity.

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