Problem 7-09 Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use Appendix A to answer the questions. a. In Year 1 the CPI was 100; 30 years later, it was 229. What was the annual rate of inflation? Round your answer to the nearest whole number. % b. Nancy and Pam both currently earn $110,000. If the annual rate of inflation is 3 percent, how much must each earn after ten years to maintain their purchasing power? Round your answer to the nearest dollar. $ c. Your parents bought a home for $50,000 in Year 1 and sold it in Year 21 for $270,000. What was the annual rate of price increase over the 20 years? Round your answer to the nearest whole number. %