Hello,

Can someone please help me with finding the interest rate? Please explain your answer. I will return the favor if the answer is correct.

Thank you

A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $690,000; March 31, $790,000; June 30, $590,000; October 30, $1,170,000. To help nance construction, the company arranged a 10% construction loan on January 1 for $1,080,000. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 12% and 6%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) January 1, 2016 690,000 $ 690,000 March 31 , 2016 790,000 June 30, 2016 590,000 295,000 October 30, 2016 1 ,170,000 195,000 Accumulated expenditures $ 3,240,000 $ 1,772,500 Average accumulated expenditures $ 1,772,500 n_-=m