Assume you just deposited $10,000 into a bank account. The interest rate on your deposit is 5% and inflation is expected to be 6% over the next year.

a) How much money will you have in your mal account at the end of one year?

b) What is the real interest rate you expect to earn on your deposit over the next year?

c) if you are saving to buy a car that currently sells for $10,500, will you have enough money to buy it next year?