Assume the time from acceptance to maturity on a $2,040,000 bankers acceptance is 90 days. Further assume that the importing banks acceptance commission is 1.25 percent and that the market rate for 90-day B/As is 7 percent. Determine the amount the exporter will receive if he holds the B/A until maturity and also the amount the exporter will receive if he discounts the B/A with the importers bank.

Amount the exporter will receive at maturity:

Amount the exporter will receive if discounted: