Bryan's Burgers has estimated monthly financing requirements for the next six months as follows:

January $8,900 April $8,900

February $2,900 May $9,900

March $3,900 June $4,900

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

January 8.0% April 15.0%

February 9.0% May 12.0%

March 12.0% June 12.0%

A. The total dollar interest payments for the six months were $379.30 (or $379.33). When solving A, the six annual rates were divided by 12 to get the monthly rates.

B. Determine 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.

The answer to 'B' IS NOT $394.00