Date: Name Class Test 14 Indicate the answer choice that best completes the statement or answer the question 1. Everything else the same, the higher the expected rate of inflation, a. the lower the maturity premium required by the investors b. the lower the tax rate in the economy c. the higher the required rate of return on an investment d. the lower the loss in purchasing power of investors e, the higher the money supply in the economy 2. Ten years ago, Emma purchased an investment for $22500. The investment Carmed 7 percent interest each year. What is the value of the investment today? a. $46,458,63 b. $36,667.76 c. $40,527.37 d. $44.260.91 c. $38,250.26 3. LeGo Financials offer two investment plans, Investment A pays 9 percent interest compounded monthly, whereas Investment B pays 10 percent interest compounded semiannually. What are the effective annual rates of Investment A and Investment B? a. 9.38 percent and 10.50 percent, respectively b. 9.75 percent and 10.25 percent, respectively c. 9.75 percent and 10.50 percent, respectively d. 9.38 percent and 10.25 percent, respectively e. 9.94 percent and 10.45 percent, respectively 4. Adam plans to invest S1500 today in a mutual fund. If he carns 12 percent interest compounded monthly, to what amount will his investment grow in 20 years? a. $18,546 b. $12,450 c. $15,897 d. $16,339 e. $17,289 5. The net fixed assets of Auburn Media Ltd. is $850 million. The sales of the firm is $1.420 million. The firm's fixed assets turnover ratio is: a. 2.42 times. b.3.45 times. c. 1.67 times. d. 1.35 times. 4.2.8 times. information