What is the effective cost of the loan for argosy

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Argocy Associates a US based investment partnership, borrows €80.000.000 at a time when the exchange rate is $1,3460/€.The entire principal is to be repaid in three years, and interest is 6,250% per annum,paid annualy in euros. The euro is expected to depreciate the dollar at 3% per annum. What is the Effective cost of this loan for Argosy?

Reference no: EM13243119

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