1. Thomson Trucking has $14 billion in assets, and its tax rate is 30%. Its basic earning power (BEP) ratio is 16%, and its return on assets (ROA) is 6%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.
2. Bridgewater Bank pays 4 percent simple interest on its savings accounts. Tidewater Bank pays 4 percent interest, compounded annually on its savings accounts. Four years ago, Lew invested $3,000 in each bank. What is the difference, if any, in his account balances today?