alleryStart learning →USD 10,000 loan at 5%; rate Rs 45 to Rs 48; local rate 11%. Borrowing cost?
ARs 24,000
BRs 30,000
CRs 49,500
DRs 54,000
Answer & Solution
Correct answer: C. Rs 49,500
Interest Rs 24,000 plus exchange difference capped at the Rs 25,500 interest gap gives Rs 49,500.
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