The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital

Finance Oct 16, 2020

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 29 basis point (0.29 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 2.19 percent and a minimum of 1.79 percent. Calculate the rate of interest for WeeK 2 to through week 9.

Date LIBOR
Week1 1.93%

Week 2 1.68%

Week 3 1.48%

Week 4 1.38%

Week 5 1.57%

Week 6 1.63%

Week 7 1.72%

Week 8 1.87%
The rate of interest for week 2 is....?

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