Based on the whole year projection , Mathew will make $8, 000 net profit at the end of the year . However , since all expenditures must be paid in full by the end of every month . Mathew may be short on cash in some months until he sees the big sales in certain months . e. g. June and December . Mathew has two sources of loan :" Annual loan at 12 % of interest per year , e .g. he borrows $1DO at the beginning of January 2019 and pays back $ 1 12 at the end of December 2019 . Early-pay - back is not allowed and Mathew can get an annual loan in January only ." Monthly loan at 2. 5% of interest , e .g. he borrows $100 at the end of March and pays back $102.5 at the end of April . Early -pay - back is not allowed and Mathew cannot get a monthly loan in December . He needs your help to determine whether he should just take up the annual loan with effect from January . Or a mixture of both types of loan facilities . Assume that Mathew has zero cash balance at the beginning of 2019 . SINGAPORE UNIVERSITY OF SOCIAL SCIENCES ( SUSS ) Page 4 of GQuestion ] Mathew is the business owner of a laundry shop located at City Plaza . He has operated the business since June 2018 and after operating it for 6 months , he has realised that in certain months , the sales revenue is sufficient to cover the operating expenditures , while for certain months the sales revenue is not enough to cover the operating expenditures and he has to rely on his personal savings to tide through . It is now the last week of December 2018 and he realises that moving forward , it is better for his business to have access to loan facility from the bank to ease out his operation . However , he is unsure of which loan package to sign up and has approached you , a close friend , to help him as you are trained in financial planning . To perform the analysis , you have requested Mathew to give a projection of the sales revenue and operating expenditures for the next twelve months . The estimates are as follows :" Month Sales Revenue ( } Bills ( S ) January* 4. 000 6. 000 February 3.000 5. 000 March 3. 000 4.000 April 3. 000 3.000 May 5. 000 4.000 June 9.000 1. 000 July 3.0.00 6. 000 Allgust 2.000 6. 000 September 1. 000 4. 000 October 2.000 2. 000 November 6. 000 1.000 December* 10.000 1.000 Based onl the whole year projection . Mathew will make $8.000 net profit at the end of the year . However, since all expenditures must be paid in full by the end of every month. Mathew may be short oil cash in some months unitil he sees the big sales in certain months