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What Is the True Purchasing Power One Year from Now

question 31

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What is the true purchasing power one year from now of $1,000 in a savings account,if it is earning 2 percent APY and inflation is 3 percent?


Definitions:

Major Organic Product

The primary substance produced in the highest yield during an organic chemical reaction.

Major Product

The primary product formed in the greatest amount during a chemical reaction.

Saponification

A chemical reaction involving the hydrolysis of fats or oils by an alkali to produce glycerol and soap.

Ester Hydrolysis

A chemical reaction in which an ester is converted into its constituent alcohol and acid by the action of water or a hydroxide ion.

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