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13-01-2023
Mathematics

Answered

: American investment fund, Muskman plans to lend $1m at an annual interest rate
of 9.5% for five years to a UK gene tech start-up company called Enegone Limited.
Muskman has fixed its initial exchange rate to 1.1 dollars to the pound and the initial
principal will be converted into pounds at that rate. There are no stage payments involved
in the deal. Give your answers below to the nearest penny.
(a) What will be the pound-value of the loan at the start of the loan period?

Answer :

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