Empirically Analyzing the Impacts of U.S. Export Credit Programs on U.S. Agricultural Export Competitiveness

EC_EG = EC_US *Exchangerate

r
^rEG

where ECEG is the export credit received by Egypt from the US, i_EG is the interest rate in

Egypt and r_pc = ——g—,n = 2
^EG n*100^,

Step 4: Finding the future value (FVEG) of the credit under Egypt borrowing

Step 5: Converting FVEG into US dollars

Step 6: Calculating the future value of cost savings (FVCS) from steps 1 and 4

FCSV = FV -FV^*
US EG

Step 7: Calculating the present value of cost savings (PVCS)

Note: When we calculate present value of cost savings for 180 days, the term of
repayment is one (n=1). All other formulas remain the same.

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