Suppose your firm is seeking a three$-$year, amortizing $$280,000$ loan with annual payments and your bank is offering you the choice between a $$289,000$ loan with a compensating balance of $$9,000$ and a $$280,000$ loan without a compensating balance. The interest rate on the $$280,000$ loan is $9\mathrm{.}5$ percent.

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