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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 234. 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 a percent, how much must och var atter nine years to maintain their purchasing power? Round your answer to the nearest dollar. $ c. Your parents bought a home for 540,000 in Year 1 and sold it in Year 31 for $220,000. What was the annual rate of price increase over the 30 years found your answer to the nearest whole number