What interest rate would make it worthwhile to incur a compensating balance of $ 2 0 ,

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Question:

What interest rate would make it worthwhile to incur a compensating balance of $

20, 000

in order to get a

2

percent lower interest rate on a

1

year, pure discount loan of

230, 000 ? (

Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round answer to

2

decimal places.

)

Posted Date: May 18, 2024 02:04 PM

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What interest rate would make it worthwhile to incur a compensating balance of $ 2 0 ,

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