TropiKana Inc

question 91

Multiple Choice

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 appreciates against the dollar from $1.40/€ at the time the loan was made to $1.45/€ at the end of the first year, how much interest will TropiKana pay at the end of the first year (rounded) ?

• A) $55,000
• B) $79,750
• C) $77,000
• D) $37,931

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Definitions:

Overeating

Consuming food in quantities greater than the body’s energy requirements.

Deprivation Dwarfism

A condition caused by extreme emotional or physical deprivation during childhood, resulting in stunted physical growth.

Growth Hormone

A hormone that stimulates growth, cell reproduction, and cell regeneration in humans and animals.

Genetic Defect

A mutation or abnormality in an individual's DNA that can lead to physical or physiological disorders or diseases.