From the following data, calculate the amount to be credited in the Customer's account. Sight Bill tendered for USD 5,00,000 on 10th Novermber, 2020 drawn under the Letter of Credit issued by the UK Bank. Interbank USD R

CS Professional · Banking - Law & Practice · PYQS · June 2021
From the following data, calculate the amount to be credited in the Customer's account. Sight Bill tendered for USD 5,00,000 on 10th Novermber, 2020 drawn under the Letter of Credit issued by the UK Bank. Interbank USD Rate: 73.2600, Exchange Margin: 0.10%, Interest Rate: 7%, Interest Period: 15 Days. Rounding off to nearest multiples of 0.0025.

Answer & Explanation:

Particulars Amount (₹) Spot Rate as given 73.2600 Less: Exchange Margin of 0.10% (73.2600 * 0.10% = 0.07326) 0.0733 Total 73.1867 Rounded off to nearest multiples of 0.0025 73.1875 USD 5,00,000 @ 73.1875 3,65,93,750.00 Less: Interest @7% for 15 Days (365 days in a Year) (5,00,000 * 73.1875 * 7% * 15/365) 1,05,269.69 Net Payable 3,64,88,480.31 Net Payable (Rounded off to nearest multiples of rupees) 3,64,88,480.00

Topics: Foreign Exchange Operations

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