a. What interest rate would make it worthwhile to incur a compensating balance of $10,500 in order to get a 0.65 percent lower interest rate on a 2-year, pure discount loan of $180,000? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Interest rate 521 % b. Is it worth incurring the compensating balance to obtain the lower rate? yes Rino