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Explain the impact of inflation

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Assume the CPI increases from 100 to 110. Explain the impact of this inflation (helped, hurt, not impacted) on each of the following:

  1. A surveyor who took out a 5% fixed-rate loan last year to buy new equipment.
  2. A bank that awarded a 6% fixed-rate loan to a couple buying their first home.
  3. A company signs a contract to clean classrooms at a fixed rate for the next 5 years. The company does not have a labor contract with its employees.
  4. A union worker who received a 10% cost of living adjustment.
  5. A student who currently earns 2% interest on her savings account.

Reference no: EM131488252

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