Would it be worth it to incur a compensating balance of $10,000 in order to get a

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Would it be worth it to incur a compensating balance of $10,000 in order to get a 1-percent-lower interest rate on a one-year, pure discount loan of $225,000?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Question Posted: Sep 23, 2014 10:52 AM

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Would it be worth it to incur a compensating balance of $10,000 in order to get a

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It depends upon whether 225000 1 i or 235000 1 i 001 is larger The compensating balan...View the full answer

Finance Applications and Theory

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