Agrimex, S.A., a Mexican corporation, borrowed $ 1 million in dollars at a 10% interest rate when

Question:

Agrimex, S.A., a Mexican corporation, borrowed $ 1 million in dollars at a 10% interest rate when the was 10 pesos per dollar. When the company repaid the loan plus interest one year later, the was 10.5 pesos to the dollar.
(a) What was the rate of interest on the loan based on the pesos received and paid back by Agrimex?
(b) Use the interest rate parity theorem to illustrate this result?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...