Is there a picture of the question? 2 13 pencils and 3 34 minutes doesn't make sense
SOLUTION:
A normal distribution would model this situation because the distribution is approximately symmetrical, thus the mean, median and mode are approximately the same and the population size is large ( greater than 30).
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
