Question 1 (1 point) An automobile that cost $19,500 in 2004 had an equivalent model 4 years later that cost $22.250. If the increase is attributed to inflation, what was the average annual rate of inflation? 3.35% 5.35% 2.35% 4.35% Question 2 (1 point) An economy is experiencing inflation at an annual rate of 6%. If this continues, what will $100 be worth 5 years from now in today's dollars? $94.73 $84.73 $64.73 $74.73 Question 3 (1 point) How much life insurance should a person buy if he wants to leave enough money to ensure that his family will receive $25,000 per year in interest in current year dollars. The interest rate expected from the bank is 11%, while the inflation rate is expected to be 4% per year. (round up to nearest thousand). Assume n is infinite, you don't know when you will die and how long your family will live and need the money $372,000 $320,000 $342,000 $362,000