Question #1

Chutes & Co. has an interest expense of $1.04 million and an operating margin of 11.6% on total sales of $30.1 million. What is Chutes' interest coverage ratio?

The interest coverage ratio is ... times.(Round to one decimal place.)

Question #2

You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18 years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.)

Cash that remains after payoff of mortgage is $... (Round to the nearest dollar.)

Question #3

Your bank pays 2.6% interest per year. You put $1,000 in the bank today and $650 more in the bank in one year. How much will you have in the bank in 2 years?

In two years, the amount that you will have is $... (Round to the nearest cent.)

Please answer all 3 questions.