2. You learned in week 5 about interest rate parity. Lets take the last problem of Problem Set 2 one step further. Recall the problem: Suppose an investor invests in a savings account in England one year ago. At the time of investment, the investor converted $100,000 to pounds at an exchange rate of 1.404$/. Assume the interest rate in England was 3% and today the investor is converting his/her savings balance (principal plus interest) to dollars when the exchange rate is 1.464$/. You were asked: How much money will the investor receive? The correct answer was $107,402 (rounded). If we assume that the 1-year forward rate at the time of the investment was 1.464$/ and interest parity held, then what was the interest rate in the U.S. at the time of investment? Show your work.