Calculating mexican peso cost of dollar loan

Assignment Help Auditing

Reference no: EM13114084

Suppose on that on January 1st a Mexican firm borrows $20 million from Citibank (USA) for one year at 8.00% interest per annum. The loan was taken when the spot rate was USD/MXP3.40. At the end of the one year when the loan was repaid, the exchange rate was USD/MXP 5.80. Based on the above information, calculate the Mexican Peso cost of the dollar loan in percentages.

Reference no: EM13114084

Questions Cloud

Taking inventory for personal use : Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual drawing of $80,000.

Describe the concept and be specific in the code : develop an ethical code that will guide the decisions of a large multinational oil company (e.g., Chevron) towards environmental protection. Be sure to describe the concept and be specific in the code.

Explain what competitive pressures be prepared to deal with : Explain What competitive pressures must Shearwater Adventures be prepared to deal with? What do we learn about the nature and strength of the competitive pressures Shearwater faces from doing a five-force analysis of competition

What mass of titanium displaces water : The density of titanium metal is 4.51g/cm3 at 25C. what mass of titanium displaces 125.0ml of water at 25c.

Calculating mexican peso cost of dollar loan : Suppose on that on January 1st a Mexican firm borrows $20 million from Citibank (USA) for one year at 8.00% interest per annum.

Transaction analysis of darby coporation : Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Find the probability that the person prefers design a : If one of these consumers is randomly selected, what is the probability that the person prefers design A and is under 25?

Draw the pathways for the synthesis of atp and gtp : Starting with IMP draw the pathways for the synthesis of ATP and GTP. You must include the structure, name of metabolite, name of enzymes, etc.

How many milliliters of coffee can be obtained : A pound of coffee beans yields 70 cups of coffee (4 cups = 1 qt). How many milliliters of coffee can be obtained from 1.0 g of coffee beans.

User Account

All Pages