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Sairaj Kadam

Stealthย โ€ขย 1m

Do you Know How Important inflation is? Let's test it. If you had to borrow $1,000 from a friend and they agreed not to charge interest, but inflation is 3% annually, are you actually paying them back the full value of what you borrowed after one year? Who will have profit and lose? Understanding inflation in simple language ๐Ÿ‘‡ My Advice a Answer. No, you are not paying back the full value of what you borrowed. Inflation erodes the purchasing power of money. If inflation is 3% annually, the $1,000 you borrowed today will only have the purchasing power of $970 in one year. When you repay $1,000 without accounting for inflation, the friend effectively loses 3% of the value because the money they receive back can no longer buy the same amount of goods or services it could when they lent it to you.

0 replies6 likes

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Vaishnavi Gupta

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Last 10 year US Stock Market returns outperform Indian Stock Market returns! And the fact that inflation in USA is very less compared to inflation in India makes it more interesting. So what do you think of this?

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This Thing Will Actually Blow Your Mind. Click on This. "Inflation is taxation without legislation." - Milton Friedman Inflation: A Major Concern in India Inflation remains a pressing issue in India, with the state of Odisha facing the highest r

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