Hi, can you please help to explain the calculations required to arrive at 5% interest to 1.0125 ?

Or there is also way to arrive to the answer? Thank you !

Occidental Olinto is a United States company that trades extensively in Europe. The company has receivables denominated in 100,000 euros due in 90 days. The company has accounts payable that it owes today and has no excess cash. The current spot rate is $1.25 to 1.00 euro, and the European short-term interest rates are 5 percent. Occidental A. $125,000 B. $98,765 C. $123,456 D. $79,072 Explanation Choice " C " is correct. The question asks you to calculate the amount of money that could be obtained by the company to liquidate payables if the company used a mone are then converted to domestic currency. Duffy would yield the following