Denim Industries can borrow its needed financing for expansion using one of two foreign lending facilities. It can borrow at a nominal annual interest rate of 12?% in Mexican pesos or it can borrow at 2% in Canadian dollars. If the peso is expected to depreciate by 11.55?% and the Canadian dollar is expected to appreciate by 4?%, which loan has the lower effective annual interest? rate? 1) The effective annual interest rate of the loan in Mexican pesos is: ? 2) The effective annual rate of the loan in Canadian dollars is expected to be: