1. You deposit $20,000 into an account today that earns 10% interest per year. Answer the following:

How much interest will you earn in year 4?

How much of this interest is simple interest, and how much results from compounding interest?

simple Interest

Compounding interest

2. Problem: Consider the following information:

Item year 1

Total Assets 365,000

Interest bearing debt 120500

Other liabilities 14600

Shareholders' Equity 229900

Sales 620000

Interest expense 6025

EBIT 36800

Tax rate 28.00%

part 1. What is the OROA in Year 1?

Part 2. The company says that next year they expect to increase sales to $688,200 without changing the amount of assets or the operating profit margin. If this is correct, what will the company's OROA be next year?

please show formula and all steps thank you