For each of the following scenarios, determine if the individual is helped or hurt by inflation. Explain each answer.

1. Jack retired five years ago and now lives on a fixed-income annuity and a small savings account that pays him 1% interest on the balance. The current inflation rate is 1.7%.

2. Jill has worked at her current position without a raise for 4 years. Because inflation has risen 5% over the course of the 4 years, she has struggled to pay day-to-day living expenses and her house payment. She asked her employer for a raise and he gave her a 6% raise because she is such a good worker.

3. Peter has been saving his money to buy his girlfriend an engagement ring. He decided to give the money to his mother to hold for him so he wouldn't spend it rather than put it in a savings account at the bank. During the time he was saving, the price of the ring he picked out increased by 10%.

4. Wendy manages a bank in the local area. The previous manager made several fixed-rate loans to customers at low interest rates to bring in new depositors. Inflation is now rising at 3% per year.

5. Luke works for a building contractor and is a member of the local ironworkers' union. The contractor is currently building 5 skyscrapers in the Chicago area. His union just negotiated a new 5-year contract that includes small annual raises and a cost of living adjustment (COLA).

6. Leia just read that the national debt owed by the federal government is at an all-time high. (Explain impact on federal government.)

7. Han works at the local tax agency. The county commissioners just voted to sell license tags at the same rate for the next 5 years. (Explain impact on county government.)

8. Lando signed a 4-year fixed rate lease for the condo he is going to live in while he attends college.