Posted: July 22nd, 2023
Modern Tombstones has estimated monthly financing requirements for the next six months as follows:
Modern Tombstones has estimated monthly financing requirements for the next six months as follows:January…………….. $20,000 April……………… $10,000February…………… 6,000 May………………. 22,000March………………. 8,000 June………………. 12,000Short-term financing will be utilized for the next six months. Projected annual interest rates are:January…………….. 9.0% April……………… 15.0%February…………… 8.0% May………………. 12.0%March………………. 12.0% June………………. 9.0%a. Compute total dollar interest payments for the six months. To convert an annual rate to a monthly rate, divide by 12.b. If long-term financing at 12 percent had been utilized throughout the six months, would the total dollar interest payments be larger or smaller?
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