Suppose that Mr. Juice requests that Wonderland, from the previous problem, offer him an interest rate of 8.5%. To make this work, Juice promises to put up collateral worth $X. In order to make Wonderland willing, what does X need to be?

Group of answer choices

$1,656.05

$1,674.47

$1,689.99

$1,717.50

This is the previous question with the answer:

Suppose Mr. Juice needs a $5,500 loan and the bank, Wonderland Banking, has decided that this guy will repay with probability 0.89, and default otherwise. At a competitive interest rate, Wonderland will require a loan repayment of . Answer: $6179.78.