Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January $
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Question:
Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows:
| January | $ 8,200 | April | $ 8,200 |
| February | 2,200 | May | 9,200 |
| March | 3,200 | June | 4,200 |
Short-term financing will be utilized for the next six months. Projected annual interest rates are:
| January | 6.0% | April | 13.0% |
| February | 7.0% | May | 12.0% |
| March | 10.0% | June | 12.0% |
a. Compute total dollar interest payments for the six months.
Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent.
b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six months?
Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent.
Expert Answer:
Answer a Compute total dollar interest payments for the six months January Monthly interest rate 60 ... View the full answer
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