Word Problems Saved Help Save & Exit Su Boatler Used Cadillac Co. requires $920,000 in financing over the next three years. The firm can borrow the funds for three years at 7 percent interest per year. Mr. Boatler decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 3 percent interest in the first year, 5 percent in the second year, and 11 percent interest in the third year. a. Determine the total three-year interest cost under each plan. Total Interest cost $ 193200 S 73600 Fixed cost financing Variable short-term financing b. Which plan is less costly? O Fixed cost plan Short-term plan