1. Using the relative form of PPP, the expected ZAR spot rate in USD three years from now is $____ per ZAR. (ZAR and USD refer to the South African rand and U.S. dollar, respectively).

Omni Advisors, an international pension fund manager, uses the concepts of purchasing power parity (PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows