How is the interest rate calculated?

How is the interest rate calculated?

Interest Rate = Base Rate + Loan Margin. The Base Rate is a variable component which resets quarterly based on the average 3-Month LIBOR (London Interbank Offered Rate) Index. The LIBOR Index resets on the first business day of each of the three months immediately preceding each quarterly adjustment date. Interest rates adjust quarterly on the first day of January, April, July and October.

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