You currently have $200 in the bank which pays a 5% pa interest rate. Apples currently cost $1 each at the shop and the inflation rate is 0% 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 3 years the nominal apple price will be $1.

b. The real growth rate in the apple price is expected to be 5% pa.

c. In 3 years your money in the bank will be worth $231.525 in nominal terms.

d. In 3 years your money in the bank will be worth $231.525 in real terms.

e. The real bank interest rate is 5% pa.