Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January February March $10,100 April 4,100 May 5,100 June January February March Short-term financing will be utilized for the next six months. Projected annual interest rates are: 5% 6 9 $10,100 11,100 6,100 April May June 12% 12 12 What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. Input your answer as a percent rounded to 2 decimal places.)
Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January February March $10,100 April 4,100 May 5,100 June January February March Short-term financing will be utilized for the next six months. Projected annual interest rates are: 5% 6 9 $10,100 11,100 6,100 April May June 12% 12 12 What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. Input your answer as a percent rounded to 2 decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows:
January
February
March
January
February
March
$10,100 April
May
June
4,100
5,100
Short-term financing will be utilized for the next six months. Projected annual interest rates are:
Interest rate
5%
6
$10,100
11,100
6,100
April
May
June
12%
12
12
What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? (Round
your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole
cent. Input your answer as a percent rounded to 2 decimal places.)
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