In Problem 18, what long-term interest rate would represent a break-even point between using short-term financing as described in part a and long-term financing? (Hint: Divide the interest payments in 18a by the amount of total funds provided for the six months and multiply by 12.)
In Problem 18, Carmen€™s Beauty Salon has estimated monthly financing requirements for the next six months asfollows:

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January February March S8,500 April 2,500 May 3,500 June. S8,500 9,500 4.500