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A ) What interest rate would make it worthwhile to incur a compensating balance of $ 1 1 , 5 0 0 in order to

A)What interest rate would make it worthwhile to incur a compensating balance of $11,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $190,000?
B) Is it worth incurring the compensating balance to obtain the lower rate?

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