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ean Use the following information to answer problems 17 and 18 Suppose that on January I a firm in Mexico borrows $20 million from Citibank (USA) for one year at 8.00% interest per annum (bullet repayrnent of principal). During the year US inflation is 2.00% and Mexican inflation is 12.00%. The loan was taken when the spot rate was Peso 3.40/USS. At the end of the one year loan period the exchange rate was Peso 5.80/USS. (9 min., 10 pt.) 17. Based on the above information, what is the cost to the firm of the loan in Mexican peso's tod (percent)? (b) 20.00% (c) 45.72% (d) 84.24%