Waec Model Questions Vol1 2018 Commerce Question 20

Practice objective / multiple choice question 20 from the 2018 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2018 Commerce Objective / Multiple Choice Hard Difficulty
Question 20 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

An exporter is paid under a documentary letter of credit for ₦5,000,000, which is to be drawn in US dollars at the prevailing exchange rate of ₦360 per $1. The exporter wishes to discount the L/C at a bank that charges a discount rate of 8% per annum on the dollar amount for a period of 45 days (actual/360). The bank also imposes a handling fee equal to 0.5% of the discounted dollar amount. How much in Naira will the exporter receive after discounting and fees?

Answer Options

A. ₦4,925,930
Correct Answer B. ₦4,925,250
C. ₦4,950,000
D. ₦4,925,000
Correct Answer
B
Correct Option:
₦4,925,250

About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 20. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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