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Question
A Swiss bank converted 1 million Swiss francs to euros to make a euro loan to a customer when the exchange rate was 1.85 francs per euro. The borrower agreed to repay the principle plus 3.75% interest in 1 year. The borrower repaid euros at loan maturity and when the loan was repaid the exchange rate was 1.98 francs per dollar. What was the bank's franc rate of return?
A. 7.75%
B. 11.04%
C. 9.94%
D. -2.82%
E. 5.71%
Answer
This answer is hidden. It contains 59 characters.
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