The late 1970s and early 1980s were years of historically high rates of inflation in Canada. The CPI was at 70.8, 77.1, 84.5, 94.6, 105.4, and 114.1 at the beginning of 1978, 1979, 1980, 1981, 1982, and 1983, respectively. These price index numbers are quoted in terms of a base value of 100 in mid-1981.
a. What amount was required at the beginning of 1983 in order to have the same purchasing power as $100 just five years earlier?
b. Whatweretheinflationratesforeachoftheyears1978to1982inclusive?