Use the Information to Answer the Following Question(s)

question 32

Multiple Choice

Use the information to answer the following question(s) .
Jackson Automotive Inc. of California agrees to sell specialized automotive parts to Hidatsi of Korea. Because the two companies have never done business with each other, Jackson requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Jackson Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 22.1. What is the size of the discount (not including the commission fee) Jackson must take for receiving the proceeds of the sale today rather than waiting for six months?

• A)$7,000
• B)$5,000
• C)$12,000
• D)$14.000

---

Definitions:

Blocked Chakra

In certain spiritual traditions, a condition where the flow of energy through the body's chakras is obstructed, possibly affecting physical and emotional health.

Structural Imbalance

refers to a condition where there is an asymmetry or misalignment in the physical structure of the body, often leading to pain, dysfunction, or increased risk of injury.

Herbal Therapies

The use of plants and plant extracts to treat illnesses or maintain health, often part of traditional or alternative medicine practices.

Drug Identification Number

A unique identifier assigned to a medication by health authorities for the purpose of regulation and identification.