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What interest rate would make it worthwhile to incur a compensating balance of $10,000 in order to get a 1 percent lower interest rate on
What interest rate would make it worthwhile to incur a compensating balance of $10,000 in order to get a 1 percent lower interest rate on a 1-year, pure discount loan of $225,000? (Negative amount should be indicatedby a minus sign. Round your answer to 1 decimal place.) |
Interest rate | % |
b. | Is it worth incurring the compensating balance to obtain the lower rate? |
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