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

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

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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