a bank offers your firm a revolving credit arrangement for up to $62 million at an interest rate of 1.47 percent per quarter. the bank also requires you to maintain a compensating balance of 3 percent against the unused portion of the credit line, to be deposited in a noninterest-bearing account. assume you have a short-term investment account at the bank that pays .88 percent per quarter, and assume that the bank uses compound interest on its revolving credit loans.
