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Problem:
Assume Avarice Corporation, a U.S. based MNC, obtains a one-year loan of 1,500,000 Malaysian Ringgit (MYR), at a nominal interest rate of 7%. At the time the loan is extended, the spot rate of the ringgit is $0.25. If the spot rate of the ringgit in one year is $0.28, the dollar amount initially obtained from the loan would be $_____________, and how many $ ___________would be needed to repay the loan?
Additional Information:
This short answer question is from Finance and it is about US MNC taking a loan of 1,500,00 Malaysian Ringgit (MYR) at an interest rate of 7%. The spot rate is $0.25. If the spot rate increases to $0.28, the rate of change of loan has been calculated.
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