Carmens Beauty Salon has estimated monthly financing requirements for the next six months as follows:

January	$	10,300	April	$	10,300
February		4,300	May		11,300
March		5,300	June		6,300

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

January	7.0	%	April	14.0	%
February	8.0	%	May	12.0	%
March	11.0	%	June	12.0	%

a. Compute total dollar interest payments for the six months. (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent.)

b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six months? (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent.)

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 than with the short-term financing plan?

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