Question

sara has $ in currency and $ in a bank account on which the bank pays no interest. the inflation rate is percent a year. calculate the amount of inflation tax that sara pays in a year.

Answer 1

The amount of inflation tax that Sara pays in a year can be calculated by multiplying the amount of currency and the amount in the bank account by the inflation rate. In this case, the inflation tax would be calculated as ($500 + $3,000) x 0.08 = $240. Therefore, Sara pays $240 in inflation tax in a year.

Step-by-step explanation: