How does inflation impact the purchasing power of interest earned?

افراط زر حاصل شدہ سود کی قوت خرید کو کیسے متاثر کرتا ہے؟

Increases purchasing power

Decreases purchasing power

Has no impact on purchasing power

Doubles purchasing power

Inflation erodes the purchasing power of interest earned.

As the increased amount of money (interest) can buy fewer goods and services.

Due to higher prices, reducing its real value.