what are the calculations for them?

Instruction 15.1: Use the information to answer the following question(s). Jackson Automotive Inc. of California agrees to sell specialized automotive parts to Hidatsi of Korea. Because the two companies have never done business with each other, Jackson requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Jackson Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum. 3) Refer to Instruction 15.1. What is the size of the commission Jackson Automotive will pay the bank for the banker's acceptance? A) $7,000 B) $5,000 C) $12,000 D) $14,000 Answer: A Diff: 2 Topic: 15.6 Trade Financing Alternatives Skill: Analytical 4) Refer to Instruction 15.1. What is the size of the discount (not including the commission fee) Jackson must take for receiving the proceeds of the sale today rather than waiting for six months? A) $7,000 B) $5,000 C) $12,000 D) $14.000 Answer: B Diff: 2 Topic: 15.6 Trade Financing Alteratives Skill: Analytical 5) Refer to Instruction 15.1. What is the total Jackson Automotive can expect to receive if the firm takes payment today? A) $993,000 B) $995,000 C) $988,000 D) $996,000 Answer: C Diff:2 Topic: 15.6 Trade Financing Alternatives Skill: Analytical