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ABC corporation needs $100,000 bank loan to pay its bills. If the bank requires 20% compensating balance, and the ABC Corporation does not currently holds

ABC corporation needs $100,000 bank loan to pay its bills. If the bank requires 20% compensating balance, and the ABC Corporation does not currently holds funds with the bank. How much ABC has to borrow from the bank? Group of answer choices

$100,000

$125,000

$80,000

$145,000

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