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If You Had $2,000 in a Savings Account That Paid

Question 24

Multiple Choice

If you had $2,000 in a savings account that paid 4% interest compounded annually, what would be the real value of your savings after two years if the annual inflation rate were 2%?


A) $2,040
B) $2,081
C) $2,160
D) $1,163
E) $2,247

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