Q5. The following table indicates the CPI for the country of Praton over the last four years. Using the information in the table, calculate the annual inflation rates. Which time frame had the lowest annual inflation rate?

Year CPI

2014 100

2015 109

2016 122

2017 127

a.2014-2015

b.2016-2017

c.2015-2016

Q6. Tony's grandfather is close to retirement from his job of 40 years at the automotive manufacturer. The grandfather has a defined benefit plan for his retirement and is looking forward to having that same amount coming to him for the rest of his life. Tony has just learned about inflation and its redistribution of purchasing power. Tony wants to give his grandfather good advice so that his grandfather's purchasing power will be able to keep up with inflation. What can Tony advise his grandfather to do to minimize the purchasing power inflation impact over time?

a.Tony advises his grandfather to retire early and take out all of his money, paying the early withdrawal penalty and move to Florida.

b.Tony advises his grandfather to start a business with his retirement funds and keep his money working for him to keep up with inflation.

c.Tony advises his grandfather to take the fixed benefit plan option and have a fixed amount of money distributed to him over their lifetime with no worries.