5. Interest, inflation, and purchasing power Suppose Cho is a sports fan and buys only baseball caps. Cho deposits $3,000 in a bank account that pays an annual nominal interest rate of 5% Assume this interest rate is fixedthat is, it wont change over time. At the time of her deposit, a baseball cap is priced at $15.00 Initially, the purchasing power of Chos $3,000 deposit is baseball caps. inflation. Then enter the corresponding purchasing power of Chos deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row dewn to the nearest baseball cap. For example, if you find that the deposit will cover 20.7 baseball caps, you would round the purchasing power down to 20 baseball caps under the assumption that Cho will not buy seven-tenths of a baseball cap. Annual Inflation Rate 0% 5% 8% Number of Caps Cho Can Purchase after One Year 4 Real Interest Rate % % When the rate of inflation is less than the interest rate on Cho's deposit, the purchasing power of her deposit of the year. over the course