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Gripp Corporation is planning to borrow $780,000 from its bank to pay one of its suppliers. The bank requires a compensating balance of 15%. Since

Gripp Corporation is planning to borrow $780,000 from its bank to pay one of its suppliers. The bank requires a compensating balance of 15%. Since Gripp currently holds no funds at the lending bank, it has borrowed enough to cover for the compensating balance as well. To pay its suppliers, Gripp actually needs: $720,000. $723,000. $665,000. $663,000. $750,000.

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