Question

You have $55,000 in a savings account that pays 2% interest per year.

The inflation rate that year is 3.24%.
To calculate simple interest: Principal x Rate x Time = Interest
How much do you make in interest in a year?

Answer 1

1. the interest make in a year is $1100

2. the spending power need to make to keep up with inflation in that year is $1782.

3. the buying power lose in that year because of inflation is $682. the buying power lose in that year because of inflation is $682.

Step-by-step explanation:

In a savings account, amount $55,000 which pays 2% interest each year and the rate of inflation is 3.24% gives,

1.The interest make in a year is $1100

2. Spending power need to make to keep up with inflation in that year is $1782.

3. Buying power lose in that year because of inflation is $682

1. the interest make in a year is $1100

2. the spending power need to make to keep up with inflation in that year is $1782.

3. the buying power lose in that year because of inflation is $682. the buying power lose in that year because of inflation is $682.