Question 884563
The *rate* of inflation is 0 (no interest) - 2%.  The rate of inflation is 2% per year.
.
The AMOUNT she loses due to inflation is 0.  She still has the same amount of money.  However, that money loses its purchasing power. The same amount of money buys fewer goods.  The purchasing power lost is ($2,000 + $100) * .02, or $42.
.
In simple terms, inflation is an increase in the money supply.