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