Suppose your firm is seeking an eight$-$year, amortizing $$800,000$ loan with annual payments and your bank is offering you the choice between an $$850,000$ loan with a $$50,000$ compensating balance and an $$800,000$ loan without a compensating balance. The interest rate on the $$800,000$ loan is $8\mathrm{.}5$ percent.

How low would the interest rate on the loan with the compensating balance have to be in order for you to choose it$?$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.