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