=+LG 5 E19–5 British Petroleum needs to borrow a specific amount of money for the next 2 months and can use two foreign lending facilities. It can borrow at a nominal annual interest rate of 0.5% in euros, or it can borrow at 3% in Norwegian krone (kr). If the pound is expected to depreciate by 10% against the euro and to appreciate by 1% against the Norwegian krone, which loan has the lower effective annual interest rate?