You currently have $100 in the bank which pays a 7% pa interest rate. Apples currently cost $1 each at the shop and the inflation rate is 4% pa which is the expected growth rate in the apple price. All rates are given as effective annual rates. Which of the below statements is NOT correct?

Select one: a. In 1 year the nominal apple price will be $1.04.

b. The real growth rate in the apple price is expected to be 0% pa.

c. In 1 year your money in the bank will be worth $107 in nominal terms.

d. In 1 year your money in the bank will be worth $102.884616 in real terms.

e. The real bank interest rate is 3% pa.