Question: Analog Computers needs to borrow $780,000 from the Midland Bank. The bank requires a 12% compensating balance. How much money will Analog need to borrow

Analog Computers needs to borrow $780,000 from the Midland Bank. The bank requires a 12% compensating balance. How much money will Analog need to borrow in order to end up with $780,000 spendable cash?

Note: Round your answer to the nearest dollar amount.

Multiple Choice

$873,600

$1,466,400

$886,364

$1,575,340

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