The annual inflation rate in the U.S is expected to be 2.63 percent and the annual inflation rate in Poland is expected to be 4.19 percent. The current spot rate between the zloty and dollar is Z4.0890/$. Assuming relative purchasing power parity holds, what will the exchange rate be in four years?

Multiple Choice

Z4.2834/$

Z3.8398/$

Z3.9006/$

Z4.3502/$

Z4.2176/$