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Liz s Health Food Store has estimated monthly financing requirements for the next six months as follows: January $ 9 , 7 0 0 April

Lizs Health Food Store has estimated monthly financing requirements for the next six months as follows:
January $9,700 April $9,700
February 3,700 May 10,700
March 4,700 June 5,700
Short-term financing will be utilized for the next six months. Projected annual interest rates are:
January 6.0% April 13.0%
February 7.0% May 12.0%
March 10.0% June 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 financing was constant at 12 percent throughout the six months.
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?
multiple choice
Smaller
LargerLIz's Health Food Store has estimated monthly financing requirements for the next slx months as follows:
Short-term financing will be utilized for the next slx 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(Round
Intermedlate calculations and final answers to 2 decimal places.)
Total dollar Interest payments
b-1. Compute the total dollar Interest payments if financing was constant at 12 percent throughout the slx months.
Total dollar Interest payments
b-2. If long-term financing at 12 percent had been utilized throughout the slx months, would the total-dollar Interest payments be larger
or smaller?
Smaller
Larger
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