Exercise 2 . (use excel formulas and steps)

On January 1 , 2019 the price of an iPad was $1,000. You received a gift of $1,000 for Christmas and you were considering two options: 1) buy the iPad for yourself or 2) deposit the $1,000 in a bank for one year earning 5% interest. Assuming you chose option two and the inflation for 2018 was 10% -

what was the cost of the ipad on December 31, 2019?

How much money would you have in the bank on December 31, 2019? And would you be able to buy the iPad on December 31, 2019?