Liz's Health Food Store has estimated monthly financing requirements for the next six months as follows:

Short-term financing will be utilized for the next six months. Projected annual interest rates are:

a. Compute total dollar interest payments for the six months. To convert an annual rate to a monthly rate, divide by 12.
b. If long-term financing at 12 percent had been utilized throughout the six months, would the total dollar interest payments be larger or smaller?

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$8,000 $8,000 January April ... 2,000 May... June ... 9,000 February ... 3,000 March.... 4,000 ... . January 8.0% April 15.0% .. ... February 9.0% May... 12.0% March.. 12.0% June. 12.0%