Assume that a firm has a $1,000,000 line of credit at an 4.94 percent rate of interestthat requires a 17.0 percent compensating balance. If the firm borrowed $359,000for 1 year, calculate amount of money available to use.Round the answer to two decimal places.Your Answer:

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Answered: Assume that a firm has a $1,000,000…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume that a firm has a $1,000,000 line of credit at an 4.94 percent rate of interest that requires a 17.0 percent compensating balance. If the firm borrowed $359,000 for 1 year, calculate amount of money available to use. Round the answer to two decimal places. Your Answer: