Solution-What is the amount if interest paid

What is the amount if interest paid

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XYZ Corp. has a calendar year end. On January 1, 2019, the company borrowed $5,000,000 U.S. dollars from an American Bank. The loan is to be repaid on December 31, 2022 and requires interest at 5% to be paid every December 31. The loan and applicable interest are both to be repaid in U.S. dollars. XYZ does not hedge to minimize its foreign exchange risk.

The following exchange rates were in effect throughout the term of the loan:

January 1, 2019US $1 = CDN $1.1500

December 31, 2019US $1 = CDN $1.1490

December 31, 2020US $1 = CDN $1.1485

December 31, 2021US $1 = CDN $1.1483

December 31, 2022US $1 = CDN $1.1487

The average rates in effect for 2019 and 2020 were as follows:
2019:US $1 = CDN $1.1493

2020:US $1 = CDN $1.1487

Problem 1: What is the amount if interest paid (CAD) during 2019?

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What is the amount if interest paid

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