ASSUME YOUR UNCLE RECORDED HIS SALARY HISTORY DURING A 40-YEAR CARE...

6. Assume your uncle recorded his salary history during a 40-year career and found that it had increased ten-fold (i.e., his salary at the end of his career was 10 times his salary at the beginning). If inflation averaged 5% annually during the period, how would you describe his purchasing power, on average? A) His purchasing power remained on par with inflation. B) He “beat” inflation by nearly 1% annually. C) He “beat” inflation by slightly over 2% annually. D) He “beat” inflation by 5% annually.