5. Interest, inflation, and purchasing power Suppose Ana is an avid reader and buys only mystery novels. Ana deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is xedthat is, it won't change over time. At the time of her deposit, a mystery novel is priced at $15.00. Initially, the purchasing power ofAna's $3,000 deposit is I lmystery novels. For each of the annual inflation rates given in the following table, first determine the new price of a mystery novel, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power ofAna 's deposit after one year in the rst row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the rst row down to the nearest mystery novel. For example, if you nd that the deposit will cover 20.? mystery novels, you would round the purchasing power down to 20 mystery novels under the assumption that Ana will not buy seventenths of a mystery novel. Annual Inflation Rate 0% 10% 13% Number of Novels Ana Can Purchase after One Year V v v Real Interest Rate l l l I when the rate of ination is less than the interest rate on Ana's deposit, the purchasing power of her deposit V over the course ofthe year