14-73 If the Exchange Rate Had Fallen from $1

question 41

Multiple Choice

14-73 If the exchange rate had fallen from $1.60/£1 at the beginning of the year to $1.50/£1 at the end of the year when the FI needed to repatriate the principal and interest on the loan.What would be the dollar loan revenues at the end of the year?

• A)$6.25 million.
• B)$11.6 million.
• C)$7.25 million.
• D)$6.625 million.
• E)$10.875 million.

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