Calculate the 3 month forward rate (using the Interest Rate Parity Theory) if the spot rate is Rs 45/US $ and the interest rate in India and the USA is respectively 8% and 5%. Based on the PPP theory,...

Calculate the 3 month forward rate (using the Interest Rate Parity Theory) if the spot rate is Rs 45/US $ and the interest rate in India and the USA is respectively 8% and 5%.

Based on the PPP theory, what will be the exchange rate after 2 years if the present exchange rate is Rs 45/US $ and the inflation rate in India and the USA is respectively 8% and 5%?