7. Assume that today is January 1, U.S. $1.00 = .90 euros, and the interest rate on dollar deposits is 3%. If in one year: 1. the dollar appreciates relative to the euro by 10%, what will be the return on dollar deposits in terms of euros? 2. the dollar depreciates relative to the euro by 20%, what will be the return on dollar deposits in terms of euros? 3. the expected exchange rate is U.S. $1.00 = .95 euros, what is the expected rate of depreciation for the dollar? 4. the dollar is expected to appreciate 5%, what interest rate on euro deposits is required if the concepts of interest-rate parity and capital mobility are to hold?