You need a $$1,000,000$ business loan as quickly as possible. You have the following two options:

a$)$ Option $1$: Borrow the money at a local bank at $14\%$ interest.

Calculate the amount to be repaid after $1$ year:

b$)$ Option $2$: Borrow the money from a English bank in Pound Sterling at $10\%$ interest. At the time the loan is issued, the exchange rate is USD$/$GBP $0\mathrm{.}80.$

i$)$ Calculate the loan amount in GBP:

ii$)$ Calculate the loan amount to be repaid in GBP:

iii$)$ Scenario $1$: Exchange rate stays stable at USD$/$GBP $0\mathrm{.}80.$ Then the amount to be repaid in USD is:

iv$)$ Scenario $2$: The dollar depreciates such that the exchange rate is USD$/$GBP $0\mathrm{.}70.$ Then the amount to be repaid in USD is:

c$)$ Briefly explain the possible advantage and disadvantage of the international loan.