The wage of a worker in 2018 is $3,000 per month. It is anticipated that the inflation rate over the next five years is going to be 10 percent. Suppose that the Consumer Price Index (CPI) in 2018 is 123.
a. What will be the CPI in 2023?
b. What should be the wage of the worker in 2023 so that her purchasing power remains at the same level as 2018?
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