When Keynes first entered the workforce in 2000 his annual salary was $41,500. Since that time Keynes has completed his studies in Macro1() and been promoted this year. Now he wants to compare his income progression in real terms with his current salary of $115,000 (in year 2016). If CPI was 136 in 2000 and 156 in 2016, what is then the 2016 equivalent value of his starting 2000 salary? Sarah buys a house in 1999. She obtains a mortgage that carries an annual interest rate of 12 per cent, and makes payments of $880 per month. The CPI in 1999 is 100, in 2000 it is 110, and in 2001 it is 120. What is the inflation rate in 2001?
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