1.(Floating-rate loans)The Bensington Glass Company entered into a loan agreement with thefirm's bank to finance thefirm's working capital. The loan called for a floating rate that was 27 basis points (0.27 percent) over an index based on LIBOR. Inaddition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.16 percent and a minimum of 1.75 percent. Calculate the rate of interest for weeks 1 through 9.

Date LIBOR

Week 1 1.99%

Week 2 1.62%

Week 3 1.51%

Week 4 1.36%

Week 5 1.63%

Week 6 1.62%

Week 7 1.73%

Week 8 1.86%

Week 9 1.87%