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 | $ 8,400 | April | $ 8,400 |
February | 2,400 | May | 9,400 |
March | 3,400 | June | 4,400 |
Short-term financing will be utilized for the next six months. Projected annual interest rates are:
January | 8% | April | 15% |
February | 9% | May | 12% |
March | 12% | June | 12% |
What long-term interest rate would represent a break-even point between using short-term financing and long-term financing?
Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. Input your answer as a percent rounded to 2 decimal places.
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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