Providing and Obtaining Credit

Since the loan is a discount loan with compensating balances, Malone would require more than a $416.67 loan. Face amount of loan = = $641.03. Doesn’t Take Discounts: If Malone doesn’t take discounts, its A/P balance would be $250. The cash needed from the bank is $500 - $250 = $250. Face amount of loan … ................
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