Please help solving question 2. The answer is lower than 2.34%. Please show me detailed steps for calculating the answer of 2.34%. Thank you so much.

L LG14-4 Minimizing Carrying and Shortage Costs Suppose that your firm is seeking a five-year, amortizing $500.000 loan with annual payments and your bank is offering you the choice between a $600,000 loan with a $100,000 compensating balance and a $500,000 loan without a compensating balance. If the interest rate on the $500,000 loan is 9 percent, how low would the interest rate on the loan with the compensating balance have to be in order for you to choose it