1. Ken bought a car last year to drive back and forth to work. Last year he spent $1,098 on gas. This year, it was $1,562. What is the inflation rate?

a. About 51%
b. About 42%
c. About 20%
d. About 39%
I believe it is b is this correct?

2.Carnie had an income of $29,520 last year. If the inflation rate is eight percent, what is her current purchasing power? Round to the nearest dollar.
a. $27,158
b. $21,520
c. $29,512
d. $26,216
I believe it is a is this correct?
Thanks in advance!

3 answers

Both of the problems are correct.

Thank you very much!

You're welcome, Cheryl. :)