Ivanhoe Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,872,000 on March 1, $1,272,000 on June 1, and $3,056,400 on December 31.
Ivanhoe Company borrowed $1,174,000 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,151,700 note payable and an 11%, 4-year, $3,326,100 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.(Round answer to 2 decimal places, e.g. 7.58%.)
Weighted-average interest rate?