Ask Question
30 January, 07:54

Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?

a. More than today

b. Exactly the same

c. Less than today

d. I do not know

+3
Answers (1)
  1. 30 January, 11:08
    0
    C Less than today

    Step-by-step explanation:

    If i save $100 at 1% per annum after 1 year I will get $101, but with inflation rate of 2%per annum a commodity that is worth $100 now will be worth $102 after 1 year so u can't buy same commodity I can buy today after 1 year even when my money has increase.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers