Assume U.S. and Swiss investors require a real rate of return of 3%. Assume the

nominal U.S. interest rate is 6% and the nominal Swiss rate is 4%. According to the

International Fisher Equation, the Swiss francs will _____ by about ______.

a. Appreciate; 3%

b.Appreciate; 1%

c.Depreciate; 3%

d.Depreciate; 2%

e.Appreciate; 2%

Answer is E, but I need to see work/formula to get there.