Question: Question 3 (1 point) A company needs $194,670 for a one-month project. The bank requires the company to keep a compensating balance of 12.40% of

Question 3 (1 point) A company needs $194,670 for a one-month

Question 3 (1 point) A company needs $194,670 for a one-month project. The bank requires the company to keep a compensating balance of 12.40% of the amount borrowed in a cash account. (That is, the company must borrow more than what it needs to comply with the compensating balance requirement.) The effective annual interest rate charged on the borrowed amount is 6.58%. If the entire borrowed amount is repaid in one month, how much total interest will be paid for the month? $1.065 $1,095 $1,124 $1,154 $1,183

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