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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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