Mercury Co. currently has three loans outstanding, all of which mature in exactly 6 years and can be paid off without penalty at any time before maturity. The current balances and annual interest rates on these loans are presented in the table below.

 Loan          outstanding balance          annual interest rate 

1                         260,000                                 9.60% 

2                           90,000                                 10.6% 

3                            450,000                                 7.4% 

Mercury Co. found a financial institution that would provide the total financing it has for 6 years at an annual interest rate of 9.2%, with the condition that the money be used to fully repay the three outstanding loans.

Determine the least expensive alternative.