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Credit Is Issued For Amount Of ‘About USD 70,000’ Allowing For Partial Shipments

Posted: Sun Sep 20, 2015 4:24 am
by etnie
A credit is issued for an amount of ‘about USD 70,000’ allowing for partial shipments. A complying presentation is honoured for USD 25,000. An amendment is then issued increasing the credit by USD 45,000.
Assuming that the amendment is accepted by the beneficiary, what is the maximum amount that remains to be drawn under the credit?
Select one:
A. USD 90,000. IncorrectIncorrect. This balance is arrived at by ignoring the 10% tolerance given by ‘about’.
B. USD 95,750.
C. USD 97,000.
D. USD 101,500.
Feedback
The correct answer is: USD 101,500. But I dont know how to calculate. Somebody can teach me?

Posted: Sun Sep 20, 2015 7:16 am
by shohelrana
(70000+45000)*1.10=126500-25000=101500

IMHO

Posted: Sun Sep 20, 2015 12:34 pm
by picant
Hi Pal,

originary amount USD 70.000,00 valid for USD 77.000,00
increase USD 45.000,00 valid for USD 49.500,00

total USD 126.500,00
First availment USD 25.000,00

Balance USD 101.500,00

OK

Posted: Sun Sep 20, 2015 4:16 pm
by etnie
thank you.
I didn't know that the increasing amount USD 45,000 should also be 1.1 times.