A major business publication reported a 12% annual rate of inflation based on a recent 1% monthly increase in the CPI (consumer price index). What is the true or effective annual rate of inflation?

I'm not sure about my answer, please help (please use excel)

101 102 103 104 105 7. A major business publication reported a 12% annual rate of inflation based on a recent 1% monthly increase in the CPI (consumer price index). What is the true or effective annual rate of inflation? 106 107 PV 108 FV $1.12 89% 10.71% 109 N 1101 0.12 111 PMT 112 the power of the dolar will decrease by 10.71 113 Answer: 114 115 116 117 118 119 120 121