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How much is the total of interest charges

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Reference no: EM132704121

A Canadian exporter has received three Usance L/Cs for exported crude canola oil with the following values and maturity dates:

USD1,000,000 - September 30th, 2020

USD1,500,000 - October 31st, 2020

USD500,000 - November 29th, 2020

On April 11th, 2020, BMO has accepted to discount of all of the above L/Cs with the annual discount rate of:

9% with recourse

15% without recourse

Exclude the First and the Last day.

Problem 1: How much is the total of interest charges if the company decides to discount all the L/Cs with recourse?

Option 1: $147,375

Option 2: $148,839

Option 3: $248,625

Option 4: $393,000

Option 5: $148,107

Reference no: EM132704121

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