Lafayette Group $($U$.$S$.).$ The Lafayette Group, a private equity firm headquartered in Boston, borrows $5,000,000$ for one year at $7\mathrm{.}375\%$

interest.

a$.$ What is the dollar cost of this debt if the pound depreciates from $$2\mathrm{.}0260=1\mathrm{.}00$ to $$1\mathrm{.}9460=1\mathrm{.}00$ over the year?

b$.$ What is the dollar cost of this debt if the pound appreciates from $$2\mathrm{.}0260=1\mathrm{.}00$ to $$2\mathrm{.}1640=1\mathrm{.}00$ over the year?