Borrowing and deposit interest rates

Hi tutor,

4.20 – 4.30
Which is the borrowing rate and deposit rate?
All along I’ve been thinking 4.20 is the borrowing rate while 4.30 is the deposit rate (while doing questions on Forward rate agreements and surprisingly, I got them right as well), that is until a MCQ question on money market hedging from Kaplan mock exam which said otherwise:

A company is due to receive $300,000 in 6 months time. How much sterling would it have in 6 months time using a money market hedge?

Spot rate ($/£) 1.65 – 1.68
Interest rates(pa):
Dollar 4.20 – 4.30
Sterling 3.50 – 3.60

What I got: £178,046
What the answer was: £177,872

The only difference in my answer and the author’s was the usage of interest rates.

Hope you could help me on this, thanks 🙂