(16) Peter deposits $1,200 in a savings account that pays an annual interest rate of 5 percent. Over the A= P(ltr)t course of a year, the inflation rate is -1 percent. At the end of the year, Peter has A) $48 more in his account, and his purchasing power has decreased by $12. B) $60 more in his account, and his purchasing power has increased by $48. C) $72 more in his account, and his purchasing power has increased by $48. morn in his account, and his purchasing power has increased by $72.

(16) Peter deposits $1,200 in a savings account that pays an annual interest rate of 5 percent. Over the A= P(ltr)t course of a year, the inflation rate is -1 percent. At the end of the year, Peter has A) $48 more in his account, and his purchasing power has decreased by $12. B) $60 more in his account, and his purchasing power has increased by $48. C) $72 more in his account, and his purchasing power has increased by $48. morn in his account, and his purchasing power has increased by $72.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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