Denim Industries can borrow its needed financing for expansion using one of two foreign lending facilities. It can borrow at a nominal annual interest rate of 9%in Mexican pesos or it can borrow at 6%in Canadian dollars. If the peso is expected to depreciate by 10.94%and the Canadian dollar is expected to appreciate by 5%.

The effective annual interest rate of the loan in Mexican pesos is %.(Round to two decimal places.)

The effective annual interest rate of the loan in Canadian dollars is % (Round to two decimal places.)

which loan has the lower effective annual interest rate?