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URGENT Due to the rising rate of inflation, ABC Banks Fixed Deposit rate notice board has been displaying the nominal rate of interest as 4.5%.

URGENT

Due to the rising rate of inflation, ABC Banks Fixed Deposit rate notice board has been displaying the nominal rate of interest as 4.5%. As a saver, Sandy is unsure of the impact from the inflation. She has approached you for advice.

(i) Explain to Sandy on the impact of inflation to saver. (5 marks)

(ii) Advise Sandy on her investments term during the rising rate of inflation. (2 marks)

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