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BC Corp,Needs $10,000 for One Quarter to Finance a Deficit

Question 58

Multiple Choice

BC Corp.,needs $10,000 for one quarter to finance a deficit.Interest charges are 2% per quarter.Your bank requires a 10% compensating balance.How much must your firm borrow in order to obtain the needed funds?


A) $11,111
B) $8,888
C) $15,270
D) $11,000

Correct Answer:

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