Please help me understand the process and answers. Thank you!

Assume you just deposited $1,000 into a bank CD account with one year until maturity. The interest rate on your deposit is 8% and inflation is expected to be 4% over the next year.

a.How muchmoneywill you have in your bank account at the end of one year?

b. What is thereal interest rateyou expect to earn on your deposit over the next year?

c. If you are saving to buy an iPhone that currently sells for $1,050, will you have enough money to buy it next year?