A firm wishes to borrow $86,000 The line of credit with its bank requires a 4%...
A firm wishes to borrow $86,000 The line of credit with its bank requires a 4% compensating balance requirement. What is the loan amount they have to borrow?
Homework Answers
amount of the loan inclusing the compensating balance = 86,000/(1-0.04)
amount of the loan inclusing the compensating balance = 89,583.33
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A firm wishes to borrow $86,000 The line of credit with its bank
requires a 4%...
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