What should be the exchange rate in us dollars at the end, Financial Management

What should be the exchange rate in us dollars at the end

The exchange rate for euros at the beginning of a recent year was USD 1.16. During that year, inflation in the U.S. was 4.5% and inflation in the euro zone was 1%. If purchasing power parity (PPP) holds, what should be the exchange rate (in U.S. dollars) at the end of the year? Please show work.

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Financial Management: What should be the exchange rate in us dollars at the end

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Financial Management: What should be the exchange rate in us dollars at the end

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