Compensating Balances Gemini Company borrowed $100,000 from First Bank at 9% interest. The loan agreement stated that a compensating balance of $10,000 must be kept in the Gemini checking account at First Bank. The total Gemini cash balance at the end of the year was $45,000. 1. How much usable cash did Gemini Company receive for its $100,000 loan? 2. What was the real interest rate paid by Gemini? 3. Prepare a footnote for the annual report of Gemini Company explaining the compensating balance.