Waec Model Questions Vol1 2024 Commerce Question 35

Practice objective / multiple choice question 35 from the 2024 Waec Model Questions Vol1 Commerce examination.

Waec Model Questions Vol1 2024 Commerce Objective / Multiple Choice Hard Difficulty
Question 35 WAEC_MODEL_QUESTIONS_VOL1 • 2024 • COMMERCE • objective

An importer receives an irrevocable, confirmed documentary letter of credit (LC) for goods worth $80,000. The LC requires the following documents: commercial invoice, packing list, bill of lading, insurance policy covering 110% of the goods value at a premium of 0.5%, and a certificate of origin. Freight costs amount to $5,000 and the insurance premium is to be added to the LC amount. The bank charges a handling fee of 0.25% of the LC amount (including insurance). Calculate the total amount that will be drawn under the LC and state whether the presented documents satisfy the LC terms.

Answer Options

A. $85,613.50; documents satisfy the LC terms
Correct Answer B. $85,653.60; documents satisfy the LC terms
C. $85,440.00; documents satisfy the LC terms
D. $85,640.00; documents satisfy the LC terms
Correct Answer
B
Correct Option:
$85,653.60; documents satisfy the LC terms

About This Question

This is Waec Model Questions Vol1 2024 Commerce Question 35. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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