Based on a quoted interest rate of 8% for the Brazilian real (R$), and depreciation in the
Fantastic news! We've Found the answer you've been seeking!
Question:
Based on a quoted interest rate of 8% for the Brazilianreal(R$), and depreciation in the R$ from $0.50 (on the day funds were borrowed) to $0.45 (on the day of loan repayment), what is the effective financing rate of a one-year loan from the viewpoint of a U.S. Firm?
Your answer: ________ (round to three decimal places)
Posted Date: