TropiKana Inc., a U. S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 5.50% per year and the Euro depreciates against the dollar from $1.40/⬠at the time the loan was made to $1.35/⬠at the end of the first year, how much interest and principle will TropiKana pay at the end of the first year if they repay the entire loan plus interest (rounded)?
A) $1,477,000
B) $1,055,000
C) â¬1,424,250
D) $1,424,250
Answers: 2
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TropiKana Inc., a U. S firm, has just borrowed euro 1,000,000 to make improvements to an Italian fru...
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