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Question
Use the following information to answer the following question(s).ABC, Inc. requires $270,000 in short-term credit and is currently arranging a loan with its bank. ABC plans to use the funds for six months, the annual rate on the loan is 12%, and the bank will require a 10% compensating balance.
If ABC must have loan proceeds of $270,000, then it must borrow:
A) $270,000.
B) $300,000.
C) $410,000.
D) $500,000.
Answer
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