You have $44,000 in a savings account that pays 2% annual interest and the inflation rate is 3.24%. how much buying power in dollars will you lose in one year because of inflation?

The effective annual interest rate would be the difference of nominal interest and inflation rate.

ieff = 2% - 3.24%

ieff = - 1.24% = -0.0124

Therefore the money left after 1 year would be:

F = 44,000 * (1 – 0.0124)

F = 43,454.4

So the amount of money lost is:

lost = 44,000 - 43,454.4

lost = $545.6

easy its decreasing

step-by-step explanation:

because its top point is at the to of the graph on the left side (atleast from the veiw i see it) now if that top point wast in the lower part of the graph it would be increasing hope this have a nice day

answer: it depends on what the tax percentage