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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
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 26 basis points (0.26%) 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 2.16% and a minimum of 1.76%. Calculate the rate of interest for weeks 2 through 10.
\begin{tabular}{cc} Date & LIBOR \\ \hline Week 1 & 1.91% \\ Week 2 & 1.62% \\ Week 3 & 1.47% \\ Week 4 & 1.35% \\ Week 5 & 1.57% \\ Week 6 & 1.68% \\ Week 7 & 1.66% \\ Week 8 & 1.94% \\ Week 9 & 1.85% \end{tabular}Step by Step Solution
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