Consolidated Corporation Requires C$50 Million in Funds

question 10

Multiple Choice

Consolidated Corporation requires C$50 million in funds.The banks has offered them a discounted loan at 8% with a compensating balance of 15%.How much must they borrow in order to net this amount?

• A)64,935,165
• B)55,455,700
• C)85,985,005
• D)35,097,555

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Definitions:

Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity demanded by consumers over a period of time.

Consumer Surplus

The discrepancy between the entire sum buyers are ready and capable of paying for a product or service and what they really spend.

Marginal Utility

The additional satisfaction or benefit received by a consumer from consuming one more unit of a good or service.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.