Calculate the customer payment amount

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Reference no: EM131904317

1. Metro Widget Corp. offers its foreign customers a trade discount of 3/20, net 40. If an European customer is invoiced EUR 100,000 and is given this trade discount, calculate the customer's payment amount if payment is made on the 15th day following the invoice date.

EUR 100,000

EUR 97,000

EUR 103,000

EUR 96,000

2. Wells Fargo, a U.S. bank lends CAD 45,000,000 to a Canadian customer for one year at an interest rate of 5.5%. The repayment of the loan is to be made in CAD. The spot exchange rate is CAD 1.25/USD. If the spot rate a year from now is CAD 1.30/USD, Wells Fargo will have ___

a transaction gain

a transaction loss

no change in transaction amount

a translation gain

Reference no: EM131904317

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