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SmartMoney Inc. is based in a (fictitious) country Liber aria that has as its home currency the Libertarian Pound (LIP). SmartMoneys financial manager attracted a
SmartMoney Inc. is based in a (fictitious) country Liber aria that has as its home currency the Libertarian Pound (LIP). SmartMoney’s financial manager attracted a one-year 15 million US dollar denominated loan with an interest rate of 2.5% per year exactly one year ago. At the time of loan issuance the exchange rate was 5.71 LIP/USD. The company has just repaid this loan with interest, with a current LIP/USD exchange rate of 6.18.
Determine the annual interest rate, in terms of LIP, that SmartMoney faced.
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
