You have $44000 in a savings account that pays 2% annual interestand the inflatation rate is 3.24%. How much buying power in dol

Question

Karolina [17]

3 years ago

10

You have $44000 in a savings account that pays 2% annual interestand the inflatation rate is 3.24%. How much buying power in dol

lars will you lose in one year because of inflation?

Mathematics

1 answer:

puteri [66] · Answer 1 · 2022-03-05T21:21:05+03:00

puteri [66]3 years ago

4 0

At the end of the year ...
the price will be 44,000*1.0324 = 45,425.60
the bank balance will be 44,000*1.02 = 44,880.00

This is 545.60 fewer dollars than required to pay the price.

You lose $545.60 in current-year buying power.