LIBOR Last Week Was 1

question 67

Multiple Choice

LIBOR last week was 1.88%, this week it is 1.91%. SC Corp. has borrowed $1,000,000 from North Pole Bank at a rate of one half a percentage point above LIBOR with cap of 2.5% and a floor of 2.0%. What interest was charged to SC last week?

• A) 2.48%
• B) 2.38%.
• C) 2.0%
• D) 2.5%

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Definitions:

House

A building for human habitation, typically consisting of multiple rooms and facilities to support daily living.

Rat

A small rodent known for its importance in scientific research and its ability to adapt to various environments.

Cat

A small domesticated carnivorous mammal with soft fur, a short snout, and retractable claws, known scientifically as Felis catus.