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SandhillCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,836,000on March 1, $1,236,000on June 1, and

SandhillCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,836,000on March 1, $1,236,000on June 1, and $3,038,370on December 31.

SandhillCompany borrowed $1,112,250on March 1 on a5-year,12% note to help finance construction of the building. In addition, the company had outstanding all year a9%,5-year, $2,342,100note payable and an10%,4-year, $3,467,800note payable. Compute the weighted-average interest rate used for interest capitalization purposes.

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