Question
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?A. $597,826 B. $594,000 C. $588,500 D. $87,926
Do not copy from Chegg otherwise I have to report
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Public Finance
Authors: Richard W. Tresch
4th Edition
0128228644, 978-0128228647
