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Question - The Bensington Glass Company entered into a loan agreement with the? firm's bank to finance the? firm's working capital. The loan called for a floating rate that was 28 basis points ?(0.28 ?percent) over an index based on LIBOR. In? addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.24 percent and a minimum of 1.79 percent. Calculate the rate of interest for weeks 2 through 10.
Date
LIBOR
Week 1
1.93?%
Week 2
1.62?%
Week 3
1.47?%
Week 4
1.33?%
Week 5
1.58?%
Week 6
1.63?%
Week 7
1.75?%
Week 8
1.92?%
Week 9
Required - Determine the rate of interest for week 2?
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