One of the authors wanted to determine the effect of changing answers on multiple-choice tests. she studied the tests given by another professor, who had told his students before their exams that if they had doubts about an answer they had written, they would be better off not changing their initial answer. the author went through the exams to look for erasures, which indicate that the first choice was changed. in these tests, there is only one correct answer for each question. use the bar chart to answer the question below.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan