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
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 2626 basis points (0.260.26%) 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 2.212.21% and a minimum of 1.741.74%. Calculate the rate of interest for weeks 2 through 10.
Date | LIBOR |
|
Week 1 | 1.931.93% | |
Week 2 | 1.671.67% | |
Week 3 | 1.521.52% | |
Week 4 | 1.341.34% | |
Week 5 | 1.591.59% | |
Week 6 | 1.691.69% | |
Week 7 | 1.661.66% | |
Week 8 | 1.921.92% | |
Week 9 | 1.891.89% |
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