Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows:JanuaryFebruaryMarchJanuaryFebruaryMarch$10,100 AprilMayJune4,1005,100Short-term financing will be utilized for the next six months. Projected annual interest rates are:Interest rate5%6$10,10011,1006,100AprilMayJune12%1212What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? (Roundyour monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest wholecent. Input your answer as a percent rounded to 2 decimal places.)

Financing is of two types short term financing and long term financing. Financing refers to the…

Answered: Carmen's Beauty Salon has estimated…

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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Carmen’s Beauty Salon has estimated monthly financing requirements for the next six months as follows: January $ 8,100 April $ 8,100 February 2,100 May 9,100 March 3,100 June 4,100 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January 5.0 % April 12.0 % February 6.0 % May 12.0 % March 9.0 % June 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.) 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.)
Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows: January February March January February March $8,400 April 2,400 May 3,400 June Short-term financing will be utilized for the next six months. Projected annual interest rates are: Interest rate 8% 9 12 April May June $8,400 9,400 4,400 What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? (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: 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% %
Carmen’s Beauty Salon has estimated monthly financing requirements for the next six months as follows: January $ 9,000 April $ 9,000 February 3,000 May 10,000 March 4,000 June 5,000 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January 9.0% April 16.0% February 10.0% May 12.0% March 13.0% June 12.0% a. Compute total dollar interest payments for the six months. Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. b-1. Compute the total dollar interest payments if long-term financing at 12 percent had been utilized throughout the six months? Note: Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. 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…
Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Construct a table showing the interest payment and loan balance each month. Verify that with monthly payments of $88.67, the loan balance reaches $0 after 120 months.
A loan officer is preparing the documents for a commercial term loan. The borrower's risk profile suggests that an annualized return ( EAR) of 6.3% is appropriate. The loan will require semi - annual payments, i .e., one payment every six months. What APR (compounded semi - annually) should be used to compute the borrower's future payments? ( please show the results in excel spreadsheet also)
16. You borrow $27,000 to purchase a plane. The loan will be paid in monthly installments over one year at 30% interest annually. The first payment is due one month from today. What is the amount of each monthly payment? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A loan officer is preparing the documents for a commercial term loan. The borrower's risk profile suggests that an annualized return (EAR) of 6.3% is appropriate. The loan will require semi-annual payments, i.e., one payment every six months. What APR (compounded semi-annually) should be used to compute the borrower's future payments? (please show the results in excel spreadsheet also)
Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Complete parts (a) through (c) below. a. Use technology to construct a table showing the interest payment and loan balance after each month. Verify that, with monthly payments of $88.67, the loan balance reaches $0 after 120 months. (Do not round until the final answer. Then round to the nearest cent as needed.) Month Interest Principal Balance S7000.00 s6963.83 $52.50 s36.17 1 119 120
Suppose you have a student loan of $35,000 with an APR of 12% for 30 years. The required monthly pament is ____
Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount points are equal to 2 percent. All other up-front financing costs to be paid by the borrower total $3,000. Compute the monthly payment and the loan balance at the end of months 1–6. What is the effective borrowing cost (EBC), assuming that the loan remains outstanding to maturity?
Assume that you take out a $3000 loan for 47 months at 6.5% APR. How much total interest will you have paid at the end of the 47 months? (Round your answer to the nearest cent.) $ 3631.12

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