need full thing solved. Thank you

5. Interest, inflation, and purchasing power Suppose Megan is a sports fan and buys only baseball caps. Megan deposits $1,000 in a bank account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixedthat is, it won't change over time. At the time of her deposit, a baseball cap is priced at $10.00. Initially, the purchasing power of Megan's $1,000 deposit is S baseball caps. For each of the annual ination rates given in the following table, first determine the new price of a baseball cap, assuming it rises at the rate of ination. Then enter the corresponding purchasing power of Megan 's deposit after one year in the rst row of the table for each ination rate. Finally, enter the value for the real interest rate at each of the given ination rates. Hint: Round your answers in the rst row down to the nearest baseball cap. For example, if you nd that the deposit will cover 20.7 baseball caps, you would round the purchasing power down to 20 baseball caps under the assumption that Megan will not buy seventenths of a baseball cap. Annual Inflation Rate 0% 5% 10% Number of Caps Megan Can Purchase after One Year _' _" _' Real Interest Rate % % % remains the same When the rate of ination ls less than the interest rate on Megan's deposit, the purchasing power of her deposit v over the course of the year