Question: A U . S . firm has just borrowed CAD 1 0 , 0 0 0 , 0 0 0 to make improvements to a

A U.S. firm has just borrowed CAD10,000,000 to make improvements to a mine site and processing plant. The interest rate is 6.50% per year and the USD changes in value from USD/CAD 1.3500 at the time the loan was made to USD/CAD 1.300 at the end of the first year.
How much interest and principal (in USD) will the firm pay at the end of the first year if they repay the entire loan plus interest?
What is the interest rate including the change in exchange rate?

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