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