You have $55,000 in a savings account that pays 2% interest per year.
the inflation rate that year is 3.24%.
to calculate simple interest: principal x rate x time = interest
how much do you make in interest in a year?
$
56782
how much would you need to have made for your spending power to keep up with inflation in that year?
$
how much buying power did you lose in that year because of inflation?
$