Answer the questions based on the relationship between real and nominal variables. Round answers to two decimal places asneeded.

When Joe started his job at the laundromat five years ago, his wage was$6.00 an hour. Today, his wage is$8.50an hour. If Joe started his job in the base year, and his real wage is the same as when he started, what is the Consumer Price Index (CPI)today? Round your answer to two decimals.

current CPI:

The International Disc Jockey's Union has a wage contract that stipulates a yearly wage increase based on the Consumer Price Index. If this year's wage is$21.00, the current CPI is140, and the contract was first signed in the base year, what was the original salary the first year of thecontract? Round your answer to two decimals.

original salary: $

Shelby bought her dream car, a 1966 red convertible Mustang, with a loan from her credit union. If Shelby paid4.5%and the bank earned a real rate of return of4.7%, what was the inflation rate over the life of theloan?

inflation rate:

Tim is feeling magnanimous and decides to loan his mother enough for her to pay off her credit card bills. If Tim wants to earn3.5% and expects inflation to be5.1%, how much will he charge his mother for theloan?

nominal rate: