How to calculate the question below?? Birthdaybook requires $125,000 to complete project. a)With a compensating balance requirement

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How to calculate the question below??

Birthdaybook requires $125,000 to complete project.

a)With a compensating balance requirement of 10%, how much will the firm need to borrow? (Round the final answer to 2 decimal places.)

b)Given your answer to part a and a stated interest rate of 7 percent on the total amount borrowed, what is the annual rate on the $125,000 actually being used? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Posted Date: May 18, 2024 09:00 AM

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How to calculate the question below?? Birthdaybook requires $125,000 to complete project. a)With a compensating balance requirement

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