Solution-If bank quotes the rate of 12 find the interest

Myopic Optical is seeking to borrow $75000 from National Bank.

A.) if the bank requires a 20% minimum compensating balance,how much will Myopic Optical be able to effectively use?

B.)If the bank quotes a rate of 12%, what will the interest rate be after considering the compensating balance requirement?

C.)If myopic must gain the use of $75000,how much must be borrowed?

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