The future inflation rates for Australia and Germany for the next two years are expected to average 8 percent per year i

[answerhappygod]

The future inflation rates for Australia and Germany for the
next two years are expected to average 8 percent per year in
Australia, and 6 percent per year in Germany. If inflation in
Australia over the next two years turns out to average 4% per year,
and German inflation averages 3% per year, what is the real value
of the euro in two years? Assume that the exchange rate in two
years is AUD1.98/EUR.