Mlambo 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. Mlambo gathers the financial information as follows:            Base price level                                                      100          Current U.S. price level                                         105          Current South African price level                          111          Base rand spot exchange rate                                 $0.175          Current rand spot exchange rate                            $0.158             Expected annual U.S. inflation                               7%          Expected annual South African inflation               5%          Expected U.S. one-year interest rate                      10%          Expected South African one-year interest rate        8%   Calculate the following exchange rates (ZAR and USD refer to the South African rand and U.S. dollar, respectively). The current ZAR spot rate in USD that would have been forecast by PPP. Using the IFE, the expected ZAR spot rate in USD one year from now. Using PPP, the expected ZAR spot rate in USD four years from now.