interest, inflation and purchasing power

CENGAGE |MINDTAP omework (CH 06) Suppose Eileen is a sports fan and buys only baseball caps. Eileen deposits $3,000 in a bank account that pays an annual nominal interest rate of 15%. Assume this Interest rate Is fixed-that is, it won't change over time. At the time of her deposit, a baseball cap is priced at $15.00. Initially, the purchasing power of Elleen's $3,000 deposit is 200 baseball caps. For each of the annual inflation rates given in the following table, first determine the new price of a baseball cop, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Ellees's deposit after one veer ie the first 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 first row down to the nearest baseball cap. For example, If you find that the deposit will cover 20.7 baseball caps, you would round the purchasing power down to 20 baseball caps under the assumation that Cileen will not buy seven-tenths of a baseball cap Annual Inflation Rate 15% 18% Number of Caps Ellgan Can Purchase after One Year Real Interest Rate When the rate of inflation is equal to the interest rate on Fileen's deposit, the purchasing power of her deposit rises T over the course of the year. Grade It Now Save & Continue