Question: problem: d. Based solely on purchasing power parity theory, calculate the expected one-year inflation rate in the United States if the Swiss in- flation rate

problem: d. Based solely on purchasing power parity theory, calculate the expected one-year inflation rate in the United States if the Swiss in- flation rate is expected to be 3.5 percent next year and the one-year forward rate of a Swiss franc is $.6100.

In step 13, I do not understand how they arrived at 1.025 for the U.s inflation rate.

Solution https://www.chegg.com/homework-help/introduction-to-finance-15th-edition-chapter-6-problem-17P-solution-9781118492673

any clarification would be greatly appreciated

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