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Business Book Publishing needs to borrow $700,000 in order to finance its new inventory. Two banks were considering offered different annual loan terms: Marine Bank

Business Book Publishing needs to borrow $700,000 in order to finance its new inventory. Two banks were considering offered different annual loan terms: Marine Bank offered a 10% loan with a 15% compensating balance to be paid back in quarterly payments. McLean National Bank offered Business Book Publishing a 12% loan to be paid back semi-annually. Which loan terms should Business Book Publishing take?

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