Question: Jones Company borrows $ 1 2 5 , 0 0 0 from First National Bank. The bank requires a 1 0 % compensating balance. Which

Jones Company borrows $125,000 from First National Bank. The bank requires a 10% compensating balance. Which of the following are true regarding this loan?
Jones will have use of $125,000
Jones will have use of $112,500
Jones will pay interest on $125,000
Jones will pay interest on $112,500
Jones Company borrows $125,000 from First National Bank. The bank requires

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