Multiple Choice
Your employer needs to borrow $550,000 to finance inventory for the upcoming seasonal rush.BIG Bank has offered to finance the inventory at 8% provided that your employer keeps a compensating balance in its operating account of 8%.How much must your employer borrow to end up with the $550,000?
A) $597,826
B) $594,000
C) $588,500
D) $87,926
Correct Answer:
Verified
Correct Answer:
Verified
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