I don't know how to solve this and was wondering if anyone could explain to me these questions? In an easy way please, as I am really not good at maths. I genuinely need to know how to calculate questions similar to these as they may show up in a test next week.

1 - Suppose that E = 25 CHF/CF, E^e = 26 CHF/CF, and Rf = 4%, and Rh = 7%. Answer the Foreign rate of return and which currency the currency trader would buy: Home currency or Foreign currency.

Foreign rate of return:

Currency to buy: