Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: $ 8,900 April January February March 2,900 May $ 8,900 9,900 4,900 3,900 June Short-term financing will be utilized for the next six months. Projected annual interest rates are: January February March 8% April Interest rate 9% May 12% June What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. Input your answer as a percent rounded to 2 decimal places. 15% 12% 12% %
Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: $ 8,900 April January February March 2,900 May $ 8,900 9,900 4,900 3,900 June Short-term financing will be utilized for the next six months. Projected annual interest rates are: January February March 8% April Interest rate 9% May 12% June What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. Input your answer as a percent rounded to 2 decimal places. 15% 12% 12% %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows:
April
$ 8,900
January
February
March
May
9,900
4,900
June
Short-term financing will be utilized for the next six months. Projected annual interest rates are:
8% April
January
February
March
$ 8,900
2,900
3,900
Interest rate
9% May
12% June
What long-term interest rate would represent a break-even point between using short-term financing and long-term financing?
Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the
nearest whole cent. Input your answer as a percent rounded to 2 decimal places.
15%
12%
12%
%
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