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Your bank offers you a $70,000 line of credit with an interest rate of 2.75% per quarter. The loan agreement also requires that 5% of

Your bank offers you a $70,000 line of credit with an interest rate of 2.75% per quarter. The loan agreement also requires that 5% of the unused portion of the credit line be deposited in a non-interest bearing account as a compensating balance. Your short-term investments are paying

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