A US Bank Has Just Extended a U

A U.S. bank has just extended a U.S. $10 million loan to a Canadian firm at the rate of U.S. prime plus 2 percent, payable in U.S. dollars, one year from now. The current Canadian dollar/U.S. dollar exchange rate is 1.367. With a prime rate of 7 percent, what is the amount of interest paid in a year?

A) C$ 1,230,300
B) $900,000
C) $700,000
D) C$658,376