We solve the question as follows:
Simple interest=Principle×Rate×Time
Thus given:
p=$55000, R=2.5%, time= 1 year
thus
Interest=55000×0.025×1=$1375
To evaluate the amount required to keep up with the inflation, your interest rate should match the inflation rate otherwise prices are going up faster than the savings.
Required interest rate=55000×0.034×1=$1870
The buying power lost will be the difference between your required interest and actual interest.
Thus:
Buying power lost=1870-1375=$495
Answer:
Complete this sentence: in a triangle, the angle with the smallest measure is always opposite the <u><em>shortest side</em></u>.
Answer:
$6750 in the bank account and $20,250 in the stock fund
Step-by-step explanation:
If B is the money they put in the bank and S is the amount they put in the stock fund, then:
B + S = 27000
1.024 B + 1.072 S = 1.06 × 27000
Solving the system of equations:
1.024 (27000 − S) + 1.072 S = 28620
27648 − 1.024 S + 1.072 S = 28620
0.048 S = 972
S = 20250
B = 27000 − S
B = 6750
They should put $6750 in the bank account and $20,250 in the stock fund.
