7 es Liz's Health Food Store has estimated monthly financing requirements for the next six months as follows: January February March January February March $8,300 April 2,300 3,300 May June Short-term financing will be utilized for the next six months. Projected annual interest rates are: O Smaller O Larger 7.0% April 8.0% May 11.0% June $8,300 9,300 4,300 14.0% 12.0% 12.0% a. Compute total dollar interest payments for the six months. To convert an annual rate to a monthly rate, divide by 12. (Round intermediate calculations and final answers to 2 decimal places.) Total dollar interest payments b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six months. Assume a long-term rate is locked in on an interest-only loan. Total dollar interest payments $ b-2. If long-term financing at 12 percent had been utilized throughout the six months, would the total-dollar interest payments be larger or smaller?

Liz's Health Food Store has estimated monthly financing requirements for the next six months as follows: Short-term financing will be utlized for the next six months. Projected annuat 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 . (Round intermediate calculations and final answers to 2 decimal places.) Total dollar interest payments b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utlized throughout the six months. Assume a long-term rate is locked in on an interest-only loan. Total dollar interest payments b-2. If long-term financing at 12 percent had been utilized throughout the six months, would the fotal dollar interest payments be lard or smaller? Smaller Larger