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A Canadian borrower borrows $100,000 from an American bank. The interest rate is 8%, and the U.S. dollar depreciates 4% over the same time period.
- A Canadian borrower borrows $100,000 from an American bank. The interest rate is 8%, and the U.S. dollar depreciates 4% over the same time period. Assuming an initial exchange rate of $.80/C$, what is the Canadian borrower’s Denominated percent cost of borrowing?
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Numerical Methods for Engineers
Authors: Steven C. Chapra, Raymond P. Canale
7th edition
978-0073397924, 007339792X, 978-0077492168, 77492161, 978-9352602131
