Use the properties of exponents to simplify the expression 
Definitions:
Compensating Balance
A minimum bank balance that a borrower must maintain as a condition for obtaining a loan, often used to compensate banks for the loan services.
Effective Interest Rate
The real interest rate on a loan or financial product, accounting for the effect of compounding over a given period.
Minimum
The lowest possible amount, quantity, or degree achievable or permissible.
Gross Working Capital
The total of all current assets in a company, which includes items such as cash, inventory, and accounts receivable.
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