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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 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 2.21 percent and a minimum of 1.73 percent. Calculate the rate of interest for weeks 2 through 10. Date LIBOR Week 1 1.91% Week 2 1.63% Week 3 1.53% Week 4 1.32% Week 5 1.64% Week 6 1.61% Week 7 1.67% Week 8 1.85% Week 9 1.91%
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