If an investment earns a constant 2% a year while prices rise a constant 6% a year, its purchasing power falls to about 56 cents per original dollar after 15 years—even when every payment arrives.
Illustrative constant-rate scenario, not a forecast: 2% annual nominal yield and 6% annual price inflation, compounded for 15 years. The exact real annual return is 1.02 ÷ 1.06 − 1 = −3.77%; the 15-year purchasing-power factor is 0.5616. Actual yields and inflation vary. Before taxes, fees, reinvestment constraints, and default risk. Educational information, not financial advice.
