On April 15, with the Canadian Dollar (CAN) Trading at $1.016

Multiple Choice

On April 15, with the Canadian dollar (CAN) trading at $1.016 to one US dollar (USD) , Lethbridge Saddlery Ltd. took delivery of $250,000(USD) worth of saddles and tack from a Montana supplier which Lethbridge paid through an operating loan at 5% in US currency. Lethbridge planned to repay the loan out of sales revenue 90 days later. If the exchange rate went to $0.980 CAN to one USD when the loan matured, how much did Lethbridge Saddlery Ltd. pay in interest in Canadian dollars?

A) $3,034
B) $3,131
C) $3,020
D) $12,303
E) $12,700