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Assume a borrower plans to take out a loan to finance the purchase of a $500,000 piece of equipment. The bank requires discount interest of

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Assume a borrower plans to take out a loan to finance the purchase of a $500,000 piece of equipment. The bank requires discount interest of 10.25% and a compensating balance of 15%. What would the loan principal need to be in order to have enough loan proceeds to pay for the equipment? $500,000.00 $557,103.06 $588,235.29 $668,896.32

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