For the explanation part below on a), all of my calculations are coming up slightly off compared to the below explanation - help, what am I missing? For example, I am coming up with $48.42 for the monthly payments for January, whereas this states it should be $48.14...I must be doing something wrong...please help. Carmens Beauty Salon has estimated monthly financing requirements for the next six months as follows:

January	$	8,300	April	$	8,300
February		2,300	May		9,300
March		3,300	June		4,300

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.)

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?(Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent.)

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 than with the short-term financing plan?
	Larger

Explanation:

a.

Carmens Beauty Salon Short-term financing
Month	Rate	Monthly Rate	Amount Financed	Monthly Interest
January	7	%	.58	%	$	8,300	$	48.14
February	8		.67			2,300		15.41
March	11		.92			3,300		30.36
April	14		1.17			8,300		97.11
May	12		1.00			9,300		93.00
June	12		1.00			4,300		43.00
							$	327.02

b-1.

Carmens Beauty Salon Long-term financing
Month	Rate	Monthly Rate	Amount Financed	Monthly Interest
January	12	%	1	%	$	8,300	$	83.00
February	12		1			2,300		23.00
March	12		1			3,300		33.00
April	12		1			8,300		83.00
May	12		1			9,300		93.00
June	12		1			4,300		43.00
							$	358.00

b-2.

Total dollar interest payments would be larger under the long-term financing plan.