Liz's Health Food Store has estimated monthly financing requirements for the next six months as follows: January February March $9,500 April 3,500 4,500 January February March May June Short-term financing will be utilized for the next six months. Projected annual interest rates are: 9.0% April 10.0% May 13.0% June $9,500 10,500 5,500 15.0% 12.0% 12.0% a. Compute total dollar interest payments for the six months. To convert an annual rate to a monthly rate, divide by 12. ( intermediate calculations and final answers to 2 decimal places.) Total dollar interest payments $ 427.92 b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six

Liz's Health Food Store has estimated monthly financing requirements for the next six months as follows: January February March $9,500 April 3,500 4,500 January February March May June Short-term financing will be utilized for the next six months. Projected annual interest rates are: 9.0% April 10.0% May 13.0% June $9,500 10,500 5,500 15.0% 12.0% 12.0% a. Compute total dollar interest payments for the six months. To convert an annual rate to a monthly rate, divide by 12. ( intermediate calculations and final answers to 2 decimal places.) Total dollar interest payments $ 427.92 b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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