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

Name: Suppose your bank pays you 6% interest per year on your savings account. If prices increase by 3% per year over that time, approximately how much nominal value do you gain by keeping $100 in the bank for a year?
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Question

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The nominal interest earned on $100 at a 6% interest rate is $6.

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