Round all dollar answers to 2 decimal places, round time (years or months) answers to one (1) decimal place and record interest rates as percent values rounded to one (1) decimal place. However, be sure to NOT input a dollar sign, commas, or percent sign on D2L. For example, record $3,284.33965 as 3284.34, record 37.285432 years as 37.3 and record .064358 = 6.4358% as 6.4.

1. Over the past 10 years, the average inflation rate in the United States was 1.8 percent per year. Due to large government deficits related to COVID, the Russian invasion of Ukraine, and projected deficits for new proposed social programs, the current inflation rate is 8.7 percent per year. If the inflation rate (i.e., the annual price increase) of a loaf of bread (assume a loaf of bread now costs $2.49), what will be the DIFFERENCE in the price of a loaf of bread 10 years from today (assuming an annual inflation rate of 8.7 percent instead of 1.8 percent)?

2. What is the future value exactly one year after the last deposit of 40 annual deposits of $2,000 per year (first deposit to be made today) given an interest rate of 11.5% p.a.?