On January 1, 2021, an American converted his $60,000 and invested in South Africa. A year later, on January 1, 2022, the value of his South African portfolio was 35% higher (r in South African Rands is +35%). After he cashed in his South African investment and exchange his money back for US dollars he realized only 20% gains (r us 20%, or he had at the end $77,000). Explain why his overall gains were just 20% (remember, in South Africa, he realizes a 35% return). Show all your calculations. If on January 1, 2020, the spot exchange rate was 4.0Rands/$1.00, what was the exchange rate on January 1, 2021?