Question
Lizs Health Food Store has estimated monthly financing requirements for the next six months as follows: January $8,000 April $8,000 February 2,000 May 9,000 March
| Lizs Health Food Store has estimated monthly financing requirements for the next six months as follows: |
| January | $8,000 | April | $8,000 |
| February | 2,000 | May | 9,000 |
| March | 3,000 | June | 4,000 |
| Short-term financing will be utilized for the next six months. Projected annual interest rates are: |
| January | 8.0% | April | 15.0% |
| February | 9.0% | May | 12.0% |
| March | 12.0% | 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 the final answer 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 | $? |
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
