Ches Problem 6-18 Interest costs under alternative plans (LO6-3] Carmen's Beauty Salon has estimated monthly...
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Ches Problem 6-18 Interest costs under alternative plans (LO6-3] Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January February March $9,500 3,500 4,500 April May June $ 9,500 10,500 5,500 Short-term financing will be utilized for the next six months. Projected annual Interest rates are: April January February March 9.00 10.00 13.01 May June 16.05 12.00 12.01 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 Smaller
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