If the one-year borrowing and lending rates in Country (mathrm{ABC}) are (3 %), and (4 %) in

Question:

If the one-year borrowing and lending rates in Country $\mathrm{ABC}$ are $3 \%$, and $4 \%$ in the United States, and if the foreign-exchange rate between dollars and the currency of Country $\mathrm{ABC}$ is $\$ 0.007576$ per currency of Country ABC (i.e., $\$ 1$ could buy 131.99 units of Country ABC), then what should the spot exchange rate of dollars for the currency of Country $A B C$ be?

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