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Suppose Your Bank Pays You 6% Interest Per Year on Your

Question 175

Multiple Choice

Suppose your bank pays you 6% interest per year on your savings account,so that $100 grows to $106 over a one-year period.If prices increase by 3% per year over that time,approximately how much real value do you gain by keeping $100 in the bank for a year?


A) $0
B) $1
C) $3
D) $4

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