Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1. $5,280,000 on June 1 , and $8,000,000 on December 31. Arlington Company borrowed $3,200,000 on January 1 on a 5 -year, 12% note to help finance the construction of the building. In addition, the company had outstanding all year a 10%,3-year, $6,400,000 note payable and an 11%,4-year, $12,000,000 note payable. What weighted-average interest rate should Arlington use to determine the interest to be capitalized? A) 10.85% B) 10.5% C) 11% D) 10.65%