Question: Suppose Kyoko is an avid reader and buys only comic books, Kyoko deposits $4,000 in a bank account that pays an annual nominal Interest rate

Suppose Kyoko is an avid reader and buys only
Suppose Kyoko is an avid reader and buys only comic books, Kyoko deposits $4,000 in a bank account that pays an annual nominal Interest rate of 15%. Astume this interest rate is foed-that is, it won't change over time. At the time of her deposit, a comic book is priced at $20.00 Initially, the purchasing power of Kyoko's $4,000 deposit is comic books For each of the annual ination rates given in the following table, Arst determine the new price of a comic book assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Kyoko's 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 down to the nearest comic book. For example, if you find that the deposit will cover 20.7 comic books, you would round the purchasing power down to 20 comic books under the assumption that Kyoko will not buy seven tenths of a comic book, Annual Inflation Rate 159 18% Talis 0% remains the samo Number of Comics Kyoko Can Purchase after One Year Real Interest Rate nises over the When the rate of inflation is greater than the interest rate on Kyoko's deposit, the purchasing power of her deposit course of the year

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