1. Zoom sales last year were $435,000, its operating costs including Depreciation were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio?

a) 4.72

b) 5.80

c) 5.23

d) 5.51

e) None of the above

2. You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $3,600 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest. How much will you have 4 years from today?

a) $15,112

b) $16,112

c) $17,112

d) $21,250

e) None of the above

3. Find the present value of an ordinary annuity with payments of $500 a year for 5 years, if interest rates are 8% compounded semiannually.

a) $1996.36

b) $1701.46

c) $2993.30

d) $1656.06

e) None of the above

4. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account in year one and you make a third deposit of $10,000 in year two. The bank pays interest at 8 percent compounded annually. How much will you have in your account in year 3?

a) $37,207

b) $35,207

c) $39,207

d) $40,502

e) None of the above