Answer:
The amount need to borrow a owner is $100,000
Step-by-step explanation:
The total amount a owner having to start a business = $1,000,000.
He wishes to place $ 100,000 into bank account to maintain as cash reserve.
Now the amount he left with to spent in business purposes = $1,000,000 - $100,000 = $ 900,000.
He needs to purchase equipment and material of $1,000,000
But he is left with only $900,000.
So the amount he has to borrow to fulfill his business requirement is
= $1,000,000 - $900,000 = $100,000
