Michael has a yearly income of $94,560. On January 1, he received a 2.5% salary increase. If inflation is...

18. Michael has a yearly income of $94,560. On January 1, he received a 2.5% salary increase. If inflation is 3.5%, find the change in Michael's purchasing power for the year.
- Michael loses $945.60 in purchasing power.
- Michael gains $892.34 in purchasing power.
- Michael gains $1,045.78 in purchasing power.
- Michael loses $826.78 in purchasing power.