if-you-have-1000-in-savings-with-a-nominal-interest-rate-of-3-and-inflation-is-1

Question

If you have $1,000 in savings with a nominal interest rate of 3% and inflation is 1%, what is the real change in purchasing power after one year?

Accepted Answer

$20 increase

Answer

$40 increase

Answer

$10 increase

Answer

$30 increase

If you have \$1,000 in savings with a nominal interest rate of 3% and inflation is 1%, what is the real change in purchasing power after one year?