Inflation is really a measure of: a) The size of the exponent in a future worth equation b) The blue book value of a depreciable asset c) The time it takes to recover an initial investment in equipment d) The change in the value of a country's currency 2) For a market interest rate of 12% per year and an inflation rate of 7% per year, the real interest rate per year is closest to: a) 4.7% b) 7% c) 12% d) 19.8% 3) An asset with a first cost of $50,000 is to be depreciated by the straight line method over a 5 year period. The asset will have annual operating costs of $35,000 and a salvage value of $10,000. According to the straight line method, the book value at the end of year 3 will be closest to: a) $8,000 b) $20,000 c) $24,000 d) $26,000 4) All of the following assets can be depreciated, except: a) A bulldozer b) A copper mine c) A surgical robot d) A conveyor belt 5) For a real interest rate of 18% per year and an inflation rate of 3% per year, the market interest rate per year is closets to: a) 20% b) 22% c) 24% d) 26%