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2.1 Norman lives in South Africa where the following Consumer Price Index (CPI) levels for the entire county were recorded across two years: - January

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2.1 Norman lives in South Africa where the following Consumer Price Index (CPI) levels for the entire county were recorded across two years: - January 2020 - December 2020=46,5 - January 2021-December 2021=43,3 Using these figures, calculate the increase or decrease in the inflation rate across these two years to 3 decimal places. Explain what effect might be expected on the nominal rate of interest because of this increase or decrease. (7 marks) 2.2. Norman runs a successful company in small town in Cape Town. The company's cash flow statement for the year ended 28 February 2022 is as follows: (21 marks)

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