Answer:
the best interest rate would be a minimum of 3.5% annual interest
Step-by-step explanation:
An inflation rate of 3.5% would mean that the buying power of Lydia's money would decrease by 3.5% every single year. Therefore, the best interest rate would be a minimum of 3.5% annual interest. That way she would at least maintain the same buying power with her money as the day that she first placed it in the account. Any interest rate higher than 3.5% would be even better as Lydia will begin to make a profit from her savings.
