Sunland Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,956,000 on March 1, $1,236,000 on June 1, and $3,075,280 on December 31.

Sunland Company borrowed $1,028,330 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,199,600 note payable and an 11%, 4-year, $3,483,000 note payable.

Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.)