Morton Company Obtains a One-Year Loan of 2,000,000 Sudanese Dinar

Multiple Choice

Morton Company obtains a one-year loan of 2,000,000 Sudanese dinar (SDD) at an interest rate of 6 per cent. At the time the loan is extended, the spot rate of the dinar is £0.0027. If the spot rate of the dinar at maturity of the loan is £0.0019, what is the effective financing rate of borrowing dinar?

A) 37.8%.
B) 51.43%.
C) -25.41%.
D) -6%.
E) None of the above