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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.
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