IV. Salassi Financial Services, an internal hedge fund manager, uses the concepts of relative purchasing power parity (RPPP) and interest rate parity (IRP) models to forecast spot exchange rates. They gather the following information as follows: 100 105 Base year price level Current U.S. price level Current South African price level Base year rand spot exchange rate (USD/ZAR" Current rand spot exchange rate (USD/ZAR Expected annual U.S inflation for years Expected annual South African inflation for years Expected U.S. one-year interest rate Expected South African one-year interest rate 0.175 0.158 7% 5% 10% 8% ""Note that International Organization for Standardization (SO) uses three letters to present the currency units of different US dollars; ZAR for South African Currency rand. nations. For example, USD is the three letters for 1. Using the IRP, compute the expected ZAR spot rate in USD one year from now. 2. Using the RPPP, compute the expected ZAR spot rate in USD four years from now