1. A new fiscal analyst has been asked by the state budget director to create a ten-year medical care cost inflation index to use in evaluating the state Medicaid budget. She has asked that a base year of 2011 be used.
   1. If medical care costs have risen at an average compound annual rate of 11.5% since 1990 (this is not a typo!), what is the value of the index in the year 2021; provided, once again, that the base year is 2011?
   2. In 2011, the Medicaid budget was $505 million. It is expected to top $1.565 billion in 2021. What is the real average annual percentage increase from 2011-2021?