uppose your firm is seeking a four$-$year, amortizing $$200,000$ loan with annual payments and your bank is offering you the choice between a $$205,000$ loan with a $$5,000$ compensating balance and a $$200,000$ loan without a compensating balance. The interest rate on the $$200,000$ loan is $9\mathrm{.}8$ percent.

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