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The Xanadu Investment Group, a private equity firm based in Florida, borrows GBP 1,000,000 for one year at 6% p.a. What is the dollar cost

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The Xanadu Investment Group, a private equity firm based in Florida, borrows GBP 1,000,000 for one year at 6% p.a. What is the dollar cost of this loan if the pound appreciates from USD1.31/GBP to USD1.35/GBP over the year? 10.85% 9.24% 11.31% 10.04% 8.76%

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