LG P9-18 Weighted average cost of capital Peter Chan has just acquired three houses by ob- taining three mortgage loans, They all mature in 15 years and can be repaid with- out penalty any time before maturity. The amounts owed and the annual interest rate associated with each mortgage loan are given in the following table. Annual Mortgage loan Balance due interest rate $ $20,000 8% B 92,000 12 832,000 6 Peter can also combine the total of his three loans (that is, $1,444,000) and create a consolidated loan from his wife. His wife will charge a 6.8% annual interest rate for a period of 15 years. Should Peter do nothing (leave the three individual loans as they are) or create a consolidated loan of $1,444,000