Twitter Corporation needs $225,000 to pay its bills. Their bank offers a one-year 12 percent simple interest loan that requires a 25 percent compensating balance to be maintained with the bank. Musk currently holds no funds at the lending bank. How much must Twitter borrow to ensure that it has $225,000 to pay its bills? (represent your numeric result with no decimal places)

Twitter Corporation needs $225,000 to pay its bills. Their bank offers a one-year 12 percent simple interest loan that requires a 25 percent compensating balance to be maintained with the bank. Musk currently holds no funds at the lending bank. How much must Twitter borrow to ensure that it has $225,000 to pay its bills? (represent your numeric result with no decimal places)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 19P

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