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a. What interest rate would make it worthwhile to incur a compensating balance of $17,000 in order to get a 0.65-percent lower interest rate on
a. What interest rate would make it worthwhile to incur a compensating balance of $17,000 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $245,000 ? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) b. Is it worth incurring the compensating balance to obtain the lower rate? Yes No
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