In 2015, a retired person in the United States who received maximum social security benefits got $2699 per month, which represented a 1.7% cost of living adjustment (COLA) over 2014.

(a) Determine the monthly benefit in 2018 if the COLA adjustments are 1.5%, 2.1%, and 2.7%, respectively, for the next 3 years.

(b) Assuming the average annual inflation is 2.0% per year, determine if the monthly benefits in 2018 have more or less purchasing power in current-value terms assuming the 3 years of COLA adjustments above.