Aplia Homework: Unemployment and ination Attempts E] Score / 3 7. Unanticipated changes in the rate of inflation Initially, Dina earns a salary of $800 per year and Charles earns a salary of $300 per year. Dina lends Charles $150 for one year at an annual interest rate of 20% with the expectation that the rate of Ination will be 2% during the one-year life of the loan. At the end of the year, Charles makes good on the loan by paying Dina $180. Consider how the loan repayment affects Dina and Charles under the following scenarios. Scenario 1: Suppose all prices and salaries rise by 2% (as expected) over the course of the year. in the following table, nd Dlna's and Charles's new salaries after the 2% increase, and then calculate the $180 payment as a percentage of their new salaries. (Hint: Remember that Dlna's salary is her b income from work and that it does not include the loan payment from Charles.) Value of Dina's new salary The $180 payment as a Value of Charles's new The $180 payment as a percentage after one year percentage of Dina's new salary salary after one year of Charles's new salary v v V 7 Scenario 2: Consider an unanticipated increase in the rate of ination. The rise in prices and salaries turns out to be 10% over the course of the year rather than 2%. in the following table, nd Dina's and Charles's new salaries after the 10% increase, and then calculate the $180 payment as a percentage of their new salaries