a. What interest rate would make it worthwhile to incur a compensating balance of $15,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $230,000? b. Is it worth incurring the compensating balance to obtain the lower rate? Complete this question by entering your answers in the tabs below. Required A Required B What interest rate would make it worthwhile to incur a compensating balance of $7,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $150,000? Note: Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. Interest rate % < Required A Required B >
a. What interest rate would make it worthwhile to incur a compensating balance of $15,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $230,000? b. Is it worth incurring the compensating balance to obtain the lower rate? Complete this question by entering your answers in the tabs below. Required A Required B What interest rate would make it worthwhile to incur a compensating balance of $7,500 in order to get a 0.65-percent lower interest rate on a 2-year, pure discount loan of $150,000? Note: Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. Interest rate % < Required A Required B >
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 13P
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