How much electronic borrow from bank to have value


Electronic bookstore requires 50,000 to support its short term financing requirements during next year. Company is estimating its financing options at bank where it maintains its checking account, that averages the balance of $3,000. The bank has offered electronic a 10% simple interest loan which has a 20% compensating balance requirement. (i) if its exsiting checking account to assist satisfy compensating balance requirement, find the loans APR? (ii) how much should electronic borrow from the bank to have $50,000 available for use(to spend)?

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Mathematics: How much electronic borrow from bank to have value
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