Analog Computers needs to borrow $885,000 from the Midland Bank. The bank requires a 17% compensating balance.

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Question:

Analog Computers needs to borrow $885,000 from the Midland Bank. The bank requires a 17% compensating balance. How much money will Analog need to borrow in order to end up with $885,000 spendable cash? (Round your answer to the nearest dollar amount.)

Multiple Choice

$1,035,450

$1,619,550

$1,066,265

$1,755,241