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Your employer needs to borrow $550,000 to finance inventory for the upcoming seasonal rush. BIG Bank has offered to finance the inventory at 8% provided

Your employer needs to borrow $550,000 to finance inventory for the upcoming seasonal rush. BIG Bank has offered to finance the inventory at 8% provided that your employer keeps a compensating balance in its operating account of 8%. How much must your employer borrow to end up with the $550,000?

$597,826.

$594,000.

$588,500.

$87,926.

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