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Liz’s Health Food Store has estimated monthly financing requirements for the next six months as

Question

Liz’s Health Food Store has estimated monthly financing requirements for the next six months as

follows:

January$8,400 April$8,400 February2,400 May9,400 March3,400 June4,400

Short-term financing will be utilized for the next six months. Projected annual interest rates are:

January8.0% April15.0% February9.0% May12.0% March12.0% June12.0%

a. Compute total dollar interest payments for the six months. To convert an annual rate to a monthly rate, divide by 12.
Finance

Liz’s Health Food Store has estimated monthly financing requirements for the next six months as