Solved: Improvements to an italian fruit plantation, Finance Basics

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Improvements to an italian fruit plantation

Problem:

TropiKana Inc. has just borrowed 1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 7.00% per year and the Euro depreciates against the dollar from $1.15/ at the time the loan was made to $1.10/ at the end of the first year, how much interest and principal will TropiKana pay at the end of the first year if they repay the entire loan plus interest (rounded)?

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Finance Basics: Improvements to an italian fruit plantation

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Finance Basics: Improvements to an italian fruit plantation

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