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New Zealand dollar (NZ$) Baylor Bank has the capacity to borrow either NZs10 million or $5 million. If Baylor Banks 6.80% 7.25% O a. $104,262 。b. $500,520. 0 с $413,419. O d. $208,044 O e. $521,325
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Detailed Information Bank has the capacity to borrow either NZS10,000,000 (or) NZS5,000,000 The New Zealand dollar will appreciate over the next five days from S0.48 to S0.50 Lending Rate Brrowing Rate 710% 6.80% 7.50% 7.25% New Zealand dollar (NZS) $5,000,000 S0.48 Dollar converedin to NZS- 10,4 16,66667 Lending rate for the New Zealand dollars (NZS) is 6.80% Hence, the total invested amount in the New Zealand dollars at the rate of 6.80% for the five days will be: Totalinvested amount NZS10,416,666.671+0.0680 360 -NZS10,416,666.67x 1000944444 NZS10,426,50463

Convertion of NZS10,426,505 dollars into dollars [NZ10,426, 505xS0.50]-$5,213,252 Calculate the Repavment dollar amount: Repayment dollar amount S5,000,000x 1+0.075 360 -S5,000,000x 1001041667 -S5,005,208.333 Dollar Profit am ount S5,213,252-S5,005,208 -$208,044 Therefore, the correct answer is Option (d) S208,044

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