Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January February $ 9,100 April 3,100 May 4,100 June March $ 9,100 10,100 5,100 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January February March 5% April 6% May 9% June Interest rate 12% 12% 12% What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? Note: 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 $ 9,100 April 3,100 May 4,100 June March $ 9,100 10,100 5,100 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January February March 5% April 6% May 9% June Interest rate 12% 12% 12% What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? Note: 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:
$ 9,100 April
January
February
3,100
May
March
4,100 June
$9,100
10,100
5,100
Short-term financing will be utilized for the next six months. Projected annual interest rates are:
January
5% April
12%
6% May
12%
February
March
9% June
12%
What long-term interest rate would represent a break-even point between using short-term financing and long-term
financing?
Note: 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.
Interest rate
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