Carmen's Beauty Salon has estimated monthly financing requirements for the next six months as follows:April$ 8,900JanuaryFebruaryMarchMay9,9004,900JuneShort-term financing will be utilized for the next six months. Projected annual interest rates are:8% AprilJanuaryFebruaryMarch$ 8,9002,9003,900Interest rate9% May12% JuneWhat 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 thenearest whole cent. Input your answer as a percent rounded to 2 decimal places.15%12%12%%

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 February March January February March $10,100 April May June 4,100 5,100 Short-term financing will be utilized for the next six months. Projected annual interest rates are: Interest rate 5% 6 $10,100 11,100 6,100 April May June 12% 12 12 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.)
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 $ 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.
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
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)
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
Imagine a loan of $420,000. The loan is to be repaid in six years (i.e., last payment at the end of month 72). If the APR of this loan is 7.80%, what will be your monthly payments? $7,724 $7,643 $7,451 $7,323 $7,548
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)
Suppose you have a student loan of $35,000 with an APR of 12% for 30 years. The required monthly pament is ____
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.)
Consider a 3-year installment loan. The APR is 11%. Monthly loan payments are $780. In the 13th month, the beginning balance is $34,000. How much of the $780 payment that month would reduce the principal of the loan?

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