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Hi there, I have a problem set from International Financial Management class, please help me with it. Thanks! Relative PPP Today's spot rate of the

Hi there, I have a problem set from International Financial Management class, please help me with it. Thanks! image text in transcribed

Relative PPP Today's spot rate of the euro is USD1.1676/EUR. Assume the relative PPP holds, the U.S. inflation over one year is expected to 3 percent, while the EU inflation is expected to be 2 percent. If you plan to go on vacation in Paris, France and will need 5000 euros in one year. What is the expected exchange rate of euro? What is the expected amount of dollars you need to pay for your trip in one year

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