<span>If interest rates are at a level of 1% and expected inflation is 2%, it would be preferable to spend your money instead of saving it.
</span>Suppose<span> you have $100 and you save it in a savings account
that pays a 1% interest rate. After a year, you will have $101 in your
account.
During this period, if inflation runs 2%, you would have to
have $102 to make up for the impact of higher prices.
Since you will
only have $101 in your account, you have actually lost some purchasing
power.
If your savings don’t grow to reflect this rise in prices over
time, the effect will be as though you are actually losing money.
This means that if you have $100 which you can use to buy a TV set, and you saved the money instead is a savings account that pays 1% interest.
After 1 year, because of inflation of 2%, the TV set now costs $102 whereas the money in your bang account wil be $101.
Thus, you actually need to get an extra $1 from somewhere to fund the TV set you could have been able to buy a year ago.
</span>
You should be able to answer this by glancing at it. But if you can't,
then you have to set up an equation.
Call the unknown number ' Z '.
You said that 0.4 = 10 Z
Divide each side of the equation by 10 : Z = 0.4 / 10 = <em>0.04</em>
Answer:
20
Step-by-step explanation:
x = price
y = number of keyboard
xy = 540
(x-2)(y+3) = 540
x = 540/y
==> x = 20
==> y = 27
Answer:
2592 cm
Step-by-step explanation:
square area = x²
rectangle area = bh
so
x² = bh
since the areas are equal
b and h are in the problem as 64 and 81
x² = 64x81
x² = 5184
divide by 2
x = 2592 cm