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A year ago, Johnathan opened a savings account at an annual nominal interest rate of 8.50%. the inflation rate over the past year was 22.00%,
A year ago, Johnathan opened a savings account at an annual nominal interest rate of 8.50%. the inflation rate over the past year was 22.00%, then which if the following statements is correct?
His purchasing Power stayed the same
The purchasing power of savings has increased 22.00%
the true increase in purchasing power of Johnathans savings was 8.50%
The purchasing power of Johnathans savings has decreased by 11.07%
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