No-Arbitrage Forward Exchange Rate

CFA Level I Economics
#1

From Kaplan:

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My Kaplan Quicksheet shows: Forward/Spot = (1+price currency int. rate / 1+base currency int. rate)

The above Kaplan explanation only displays two of the four variables. Why isn’t it showing three out of the four in order to solve the problem?

#2

It appears that they meant something like the forward rate differential is 3.016%.

Just another horribly worded question.

#3

I see, and now I understand the reasoning for the arithmetic. Thank you.

#4

My pleasure.