Why would your savings account “lose value” if the rate of return you receive is lower than the rate of inflation?

Mathematics

1 answer:

DerKrebs [107]3 years ago

3 0

Answer:

Inflation is the continuing reduction of the purchasing power or price level rise in a given time period.

Therefore, keeping money in a savings account that gives an interest rate that is lower than the inflation rate, in a period of high inflation will result in a reduction of the purchasing power of the amount of money plus interest in the savings account.

If the interest rate is 10%, the amount, A, in the account after a given time will be 1.1A

If the inflation rate is 15%, the value of the goods sold initially at A, will become 1.15A after the given period and the amount in the account will no longer be able to purchase the goods it was initially able to purchase, or the amount in the savings account will lose value

Step-by-step explanation:

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Please click the picture and help me :D

harkovskaia [24]

Well first of all, let's define what an integer is...

Integers are numbers such as -2, -1, 0, 1, 2 etc etc.

------

If f(5)=12,

f(6)=0.3*f(6-1)

= 0.3*f(5)

= 0.3*12

= 3/10 * 12

= 36/10

= 3.6

We now know that f(6)=3.6

Now:

f(7)=0.3*f(7-1)

= 0.3*f(6)

= 0.3*3.6

= (3/10) * (36/10)

= 108/100

= 1.08

Answer:

f(7)=1.08

4 0

3 years ago

Pls help sixowiskosixo

erma4kov [3.2K]

The given question is a quadratic equation and we can use several methods to get the solutions to this question. The solution to the equation are 3/4 and -5/6 and the greater of the two solutions is 3/4

<h3>Quadratic Equation</h3>

Quadratic equation are polynomials with a second degree as it's highest power.

An example of a quadratic equation is

$y = ax^2 + bx + c$

The given quadratic equation is $24x^2 + 2x = 15$

Let's rearrange the equation

$24x^2 + 2x = 15\\24x^2 + 2x - 15 = 0$

This implies that

a = 24
b = 2
c = -15

The equation or formula of quadratic formula is given as

$y = \frac{-b +- \sqrt{b^2 - 4ac} }{2a}$

We can substitute the values into the equation and solve

$y = \frac{-b +- \sqrt{b^2 - 4ac} }{2a}\\y = \frac{-2 +- \sqrt{2^2 -4 * 24 * (-15)} }{2*24} \\y = \frac{-2+-\sqrt{4+1440} }{48} \\y = \frac{-2+-\sqrt{1444} }{48} \\y = \frac{-2+- 38}{48} \\y = \frac{-2+38}{48} \\y = \frac{3}{4}\\ \\or\\y = \frac{-2-38}{48} \\y = \frac{-40}{48} \\y = -\frac{5}{6}$