Answer:
Part A) The percentage increase was 
Part B) Michael is financially better off this year than last year
Step-by-step explanation:
Part A)
we know that
Using proportion
Let
x-----> the percentage increase

Part B) Compare the percentage increase with the inflation

The percentage increase is greater than the inflation
therefore
Michael is financially better off this year than last year
So pythagrorean theorem is the ideal way and easiest way to solve this
a^2+b^2=c^2
8.5^2+11^2=x^2
72.25+121=193.25
square root of 193.25=13.9014 or 13.9 in
9.5^2+15^2=x^2
90.25+225=315.25
square root of 315.25=17.7553 or 17.8 ft