It is estimated that 100,000 bags of cement will be needed in total for a building project. Cement costs at GHS 30 today. It is expected that in one year the price will be GHS 39 per bag to reflect inflation. A bank is willing to lend you money to buy all the cement you need today. However, in one year, you will pay the bank enough money to buy back 110,000 bags.

i) What is the real return to the bank if you are able to meet the condition?

ii) What is the nominal return to the bank?

iii) Show that the Fisher effect holds in Ghana.