What happens at the end of the year
Problem
Aditi deposits $1000 into a savings account that pays an annual interest rate of 5 percent. Over the course of a year, the inflation rate is 7 percent. What happens at the end of the year?
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Aditi deposits $1000 into a savings account that pays an annual interest rate of 5 percent. What happens at the end of the year?
Explain the different approaches adopted by each theory.
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