Fact-checking The Economist

Here is a query for students who are learning close compounding.  What is incorrect alongside the next passage from The Economist magazine?

Investors who bought Treasury bonds inwards 1946, when yields were around electrical current levels, did non live on a formal default. But over the next 35 years they lost coin inwards existent price at a charge per unit of measurement of 2% a year. The cumulative existent loss was 91%. By that standard, Greek creditors, who of late suffered a 50% loss via default, were lucky.

Answer: The minute publish is inconsistent alongside the first.  Note that .98^35=.49, in addition to then nosotros popular off only a 51 portion cumulative loss.

In fact, the toll level from 1946 to 1981 rose yesteryear a component of close 5, in addition to then belongings currency with a nil nominal provide led to a existent loss of only about lxxx percent.
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