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) $3
C) $4
D) $1
Correct Answer:
Verified
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