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Question:</h2>
As the data in incomplete, lets consider the data found on the net for the same question
DATE LIBOR
week 1 1.98%
week 2 1.64%
week 3 1.54%
week 4 1.31%
week 5 1.57%
week 6 1.69%
week 7 1.66%
week 8 1.94%
week 9 1.92%
(This data in not given in the question. If some values differ from this data, just change the that value in the method below and you'll get your answer)
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Answer:</h2>
Floating rate = 0.25%
Maximum rate = 2.24%
Minimum rate = 1.71%
General formula for for finding rate of interest of a week
Week Rate = Previous Week's Rate (LIBOR from table) + Floating Rate
Lets find the values:
Week 2 rate = Week 1 rate + 0.25% = 1.98% + 0.25% = 2.23%
Week 3 rate = Week 2 rate + 0.25% = 1.64% + 0.25% = 1.89%
Week 4 rate = Week 3 rate + 0.25% = 1.54% + 0.25% = 1.79%
Week 5 rate = Week 4 rate + 0.25% = 1.31% + 0.25% = 1.56%
Week 5 rate is lower than the minimum rate, rate of Week 5 can be taken as minimum rate
Week 5 rate = 1.71%
Week 6 rate = Week 5 rate + 0.25% = 1.57% + 0.25% = 1.82%
Week 7 rate = Week 6 rate + 0.25% = 1.69% + 0.25% = 1.94%
Week 8 rate = Week 7 rate + 0.25% = 1.66% + 0.25% = 1.91%
Week 9 rate = Week 8 rate + 0.25% = 1.94% + 0.25% = 2.19%
Week 10 rate = Week 9 rate + 0.25% = 1.92% + 0.25% = 2.17%
