1 answer

Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January...

Question:

Carmens Beauty Salon has estimated monthly financing requirements for the next six months as follows: January February March

Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January February March $8,600 2,600 3,600 April May June $8,600 9,600 4,600 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January February March 5.0% 6.0% 9.08 April May June 12.0% 12.0% 12.0% a. Compute total dollar interest payments for the six months. (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent.) Total dollar interest payments b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six months? (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent.) Total dollar interest payments b-2. If long-term financing at 12 percent had been utilized throughout the six months, would the total-dollar interest payments be larger or smaller than with the short-term financing plan? Smaller Larger

Answers

Part a
Carmen's Beauty Salon
Short-term Financing
Col I Col II Col III Col IV Col V(Col III*Col IV)
Month Annual Rate Monthly Rate(Annual rate/12) Amount Fiananced Monthly Interest
January 5.00% 0.42% $8,600 $36
February 6.00% 0.50% $2,600 $13
March 9.00% 0.75% $3,600 $27
April 12.00% 1.00% $8,600 $86
May 12.00% 1.00% $9,600 $96
June 12.00% 1.00% $4,600 $46
Total Interest Payments $304
Part b.1
Carmen's Beauty Salon
Short-term Financing
Col I Col II Col III Col IV Col V(Col III*Col IV)
Month Annual Rate Monthly Rate(Annual rate/12) Amount Fiananced Monthly Interest
January 12.00% 1.00% $8,600 $86
February 12.00% 1.00% $2,600 $26
March 12.00% 1.00% $3,600 $36
April 12.00% 1.00% $8,600 $86
May 12.00% 1.00% $9,600 $96
June 12.00% 1.00% $4,600 $46
Total Interest Payments $376
Part b.2:-It would be larger under the long-term financing
.

Similar Solved Questions

1 answer
CASE 8 Lui was a qualified journeyman electrician who was employed by a municipal public-utilities commission...
CASE 8 Lui was a qualified journeyman electrician who was employed by a municipal public-utilities commission on a full-time basis. On weekends and evenings, he occasion- ally assisted friends who were constructing their own homes by installing their electrical wiring for them. In most cases he did ...
1 answer
16 As shown in Figure (5), block A, with a mass of 10 kg, slides down...
16 As shown in Figure (5), block A, with a mass of 10 kg, slides down the slope from stationary to hit block B, with a mass of 5 kg. Block A travels 5 m immediately before hitting block B. The sliding friction coefficient between the blocks and the slope is = 0.3. O-x-y is a sta- tionary inertial re...
1 answer
Case Study #3 Patient History Meg P. is a 21 year old female college student in...
Case Study #3 Patient History Meg P. is a 21 year old female college student in the honors program carrying a heavy course load. She has recently been diagnosed with Type II diabetes. She is 5’6” and currently weighs 155 lbs. She has been prescribed an oral hypoglycemic to help regulate ...
1 answer
Exercise P7.6. Write a function that returns a pointer to the maximum value of an array...
Exercise P7.6. Write a function that returns a pointer to the maximum value of an array of floating-point data: double* maximum(double al], int a size) If a size is 0, return NULL....
1 answer
Choose three of the online dictionaries listed below and explore the site in detail What features...
Choose three of the online dictionaries listed below and explore the site in detail What features did you find on the site? What features did yon especially enjoy and why? What features would be most useful to a business English student? Merriam-Webster Online (http://www.m-X.com) Wiktionary (http:/...
1 answer
Can you please send me brief answer according to fundamental of nursing ninth edition. List 3...
can you please send me brief answer according to fundamental of nursing ninth edition. List 3 actions that should be taken to ensure accurate weight measurement of a hospitalized patient. 1 Name 1 location that you would assess each of the following skin color variations: cyanosis, pallor jaundic...
1 answer
The ledger of Pharoah Company on July 31, 2022, includes the selected accounts below before adjusting...
The ledger of Pharoah Company on July 31, 2022, includes the selected accounts below before adjusting entries have been prepared. Debit Credit $24,000 Investment in Note Receivable Supplies Prepaid Rent Buildings Accumulated Depreciation-Buildings Unearned Service Revenue 24,000 4,200 290,000 $120,0...
1 answer
Calculate the following forecasts using the data below. For periods 4 through 10, develop the exponentially...
Calculate the following forecasts using the data below. For periods 4 through 10, develop the exponentially smoothed forecasts using a forecast for period 3 (F3) of 45.0 and an alpha of 0.4. Calculate the three-period moving-average forecast for periods 4 through 10. Calculate the weighted mov...
1 answer
Product B Product A Direct materials $14 per unit 0.5 DLH per unit 0.4 MH per...
Product B Product A Direct materials $14 per unit 0.5 DLH per unit 0.4 MH per unit $25 per unit 1.5 DLH per unit 1.1 MH per unit Direct labor hours Machine hours Batches 125 batches 250 batches 10,000 units 10 modifications 2,000 units Volume Engineering modifications Number of customers 50 modifica...
1 answer
Presented below is information related to Vaughn Company. Cost Retail Beginning inventory $ 61,600 $107,300 Purchases...
Presented below is information related to Vaughn Company. Cost Retail Beginning inventory $ 61,600 $107,300 Purchases (net) 120,170 180,700 Net markups 10,325 Net markdowns 26,679 Sales revenue 187,090 Compute the ending inve...
1 answer
Scores for a common standardized college aptitude test are normally distributed with a mean of 515...
Scores for a common standardized college aptitude test are normally distributed with a mean of 515 and a standard deviation of 108. Randomly selected men are given a Test Preparation Course before taking this test. Assume, for sake of argument, that the preparation course has no effect. If 1 of the ...
1 answer
A company's warehouse contents were destroyed by a flood on September 12. The following information was...
A company's warehouse contents were destroyed by a flood on September 12. The following information was the only information that was salveged: 1 Inventory, beginning: $29,800 2 Purchases for the perlod: $18,800 3. Sales for the period: $56,800 4 Sales returns for the perlod: $880 The company...
1 answer
If the expectation of short-term interest rate remains the same in the future, the expectations theory...
If the expectation of short-term interest rate remains the same in the future, the expectations theory predicts that the yield curve will be while the liquidity preference theory predicts that the yield curve will be_ A B. C. D. Flat; flat Upward sloping; upward sloping Flat; upward sloping Upward s...
1 answer
Hurry up please (b) The results of Marshall test for five specimen is given below. Find...
hurry up please (b) The results of Marshall test for five specimen is given below. Find the optimum bitumen content of the mix. Bitumen Stability Flow V, VFB Gm content (kg) 3 505.4 4 725.5 5 815.0 6 770.5 7 660.4 (units) (%) (%) 9.0 12.5 34 9.6 7.2 165 12.0 3.9 84 14.8 2.4 91 19.5 1.9 93 2.17 2....
1 answer
A spring has a length of 0.180 m when a 0.300 kg mass hangs from it,...
A spring has a length of 0.180 m when a 0.300 kg mass hangs from it, and a length of 0.750 m when a 2.20 kg mass hangs from it. (a) What is the force constant (in N/m) of the spring? _? N/m (b) What is the unloaded length (in m) of the spring? _?  m...
1 answer
Fill the blanks for reactants,conditions or products 1. BH3 2. H2O2, HO H3C Br2, H2O =CH₂ 7. H₂C NaNH2 CH3CH2-CEC-H...
fill the blanks for reactants,conditions or products 1. BH3 2. H2O2, HO H3C Br2, H2O =CH₂ 7. H₂C NaNH2 CH3CH2-CEC-H CH3CH2Br...
1 answer
Really need some help Previous 21 22 23 24 25 26 27 28 Next Question 21...
really need some help Previous 21 22 23 24 25 26 27 28 Next Question 21 of 28 (4 points) View problem in a pop-up 8.3 Section Exercise 19 A survey of 15 large U.S. cities finds that the average commute time one way is 25.4 minutes. A chamber of commerce executive feels that the commute time in his c...
2 answers
Explain how energy is trapped by a plant, stored and then released several days later
Explain how energy is trapped by a plant, stored and then released several days later...