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 rate that was 27 basis points ​(0.270.27 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 2.16 percent and a minimum of 1.71 percent. Calculate the rate of interest for weeks 2 through 9

Date	LIBOR
Week 1	1.92%
Week 2	1.69%
Week 3	1.49%
Week 4	1.31%
Week 5	1.57%
Week 6	1.67%
Week 7	1.71%
Week 8	1.87%
Week 9	1.87%

The rate of interest for week 2 is %.
​(Round to two decimal​ places.)

Answer 1

C E F G Date LIBOR Floating Basis Points Previous Week LIBOR Max Cap Rate Min Cap Rate Rate of Interest Floating Basis Points 1 2 Week 1 1.92% 3Week 2 1.69% 0.27% 2.19% 2.16% 1.71% 2.16% 1.96% 4 Week 3 1.49% 0.27% 1.96% 2.16% 1.71% 5 Week 41.31% 6 Week 5 1.57% 7 Week 6 1.67% 8 Week 7 171% 1.76% 0.27% 1.76% 2.16% 1.71% 0.27% 1.58% 2.16% 1.71% 1.71% 0.27% 1.84% 2.16% 1.71% 1.84% 2.16% 0.27% 1.94% 1.71% 1.94% 1.98% 9 Week 8 1.87% 0.27% 2.16% 1.71% 1.98% 10 Week 9 1.87% 2.14% 0.27% 2.16% 1.71% 2.14% 11

A C F F Floating Basis Points Previous Week LIBOR Floating Basis Points Max Cap Rate Min Cap Rate Date LIBOR Rate of Interest Week n 0218 0.0216 D0169 0027 0.0027 0.0171 0.01/1 B2 C3 FIF(D3>E3,E3, D3) FIF(DM>E4,E4,D4) 0.0149 4 Week 3 83+CA 6 Wesk 5 Wock 6 a 0171 0 0027 F(F6 D6 FG D6) =IF(D7 >E7,E7,D7) 0.0216 0.0167 0.0027 B6+C7 0.0171 EFIDR:E9 ER DRN IF(D10>E10,E10 D10) 90171 00171 o0197 o0187 o 0216 0.0027 10 Week 9 B9C10