Question #66548

Your bank paid 3% interest on $1,000 deposited in your savings account. The inflation rate during the year was 4%.
A.) Calculate the real interest rate that you earned on the deposit. (Enter a numeric value for your answer including the correct sign.)
66%
B.) Based on your calculations above, you ______ in this case.
A.
gained
B.
lost
C.
neither gained nor lost

Expert's answer

A)

- bank paid

- inflation rate

The real interest rate is -14,28%

B) Based on your calculations above, you lost in this case.

- bank paid

- inflation rate

The real interest rate is -14,28%

B) Based on your calculations above, you lost in this case.

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