Your company has a 100000 line of credit through a local


Your company has a $100,000 line of credit through a local bank. The bank requires an 8 percent compensating balance and charges 10 percent on the amount borrowed against the line. If the company needs $55,000 to purchase inventory, what is the minimum amount you must put into the compensating balance account? Assume the loan is for a period of one year.

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Financial Accounting: Your company has a 100000 line of credit through a local
Reference No:- TGS01691131

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