You believe the Naira will appreciate over the next 6 months from N80.00/ to N72.00/. The

following annual interest rates apply:

Currency	Deposit Rate	Borrowing Rate
Naira	18. 0%	20.0%
Cedi	20.0%	25.0%

i. If you have the capacity to borrow either N80 million or 1million, would you borrow

naira to invest in cedis, or borrow cedis to invest in naira?

ii. In making a choice after your analysis in part (i) above, what additional factors would you take into consideration, and why?