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Gordon has a commercial paper for $8 million dated 01 May 2019 with 7.50% p.a. compounded monthly for 3 years after date. On 01 October

Gordon has a commercial paper for $8 million dated 01 May 2019 with 7.50% p.a. compounded monthly for 3 years after date.

On 01 October 2020, he asked ABC bank to discount the paper, in which the bank charged 10.75% p.a. compounded quarterly. Find the amount ABC bank paid to Gordon on 01 October 2020. (7 marks)

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