A project was tendered in 2009 for US$3.5 million, when the exchange rate was US$1.0315 per $C. It started building in 2010 and the money was borrowed from the Canadian bank when the exchange rate fell to US$0.971 per $C. What is the increase in the amount borrowed?
A) $104 531
B) $106 883
C) $110 250
D) $5719
E) $211 750

Question

Quizplus · Accepted Answer

The amount borrowed in Canadian dollars is 3.5 million / 0.971 = $3,605,822. The amount borrowed in 2009 is 3.5 million / 1.0315 = $3,394,310. The increase in the amount borrowed is $3,605,822 - $3,394,310 = $211,512.

A Project Was Tendered in 2009 for US$3