Real and nominal rates interest Zane Perelli curently has $116 that he can spend today on socks costing $2.90 each. Atematively, he could imest the $116 in a risk troe U.5. Treasury security that is expected to eam a 13% nominal rate of interest. The consensus forecast of leading economists is a 5% rate of inflation over the coming yea. a. How mary socks can Zane purchase today? b. How much money will Zane have at the end of 1 year it he forgoes purchasing the socks todixy and imvests his moncy instead? (lgnore taxes) c. How much would you expect the socks to cost at the end of 1 yoar in light of the expected inflation? d. Use yout findings in parts b and c to determine how many socks (fractions ate OK) Zane can purchase at the end of 1 year. In peicentege teems, how many more or luwer aocks can Zave buy at the end of 1 year? e. What is Zane's reas rate of retum over the year? How is it related to the percentape change in Zane's busying powor tound in part d? Explan A. The number of socks Zare can purchase today is socks. (Roind to the reaver woole number)