Grab a sheet of paper, and jot down your answers to the following financial questions:
1. Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, would you have more than $102, exactly $102 or less than $102?
a. More than $102
b. Exactly $102
c. Less than $102
d. Don’t know
2. Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or …Read More