A Canadian-based MNC borrows $50 million from London Enterprises when the exchange rate is $1.50/.A year later, repayment with interests and principal becomes 52 million. What will be the cost of the loan to this Canadian firm if GBP has appreciated to $1.60/ over the year?

____

A)4.00%

B)10.93%

C)-2.50%

D)Undetermined

Hint:r = (1 + r*)(1 + %S) - 1

Please note, there is a similar question published but the initial amount of the loan is 50, which is different from the case I'm asking about. Please don't confuse both. Thank you