Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6460000 on March 1, $5280000 on June 1, and $8450000 on December 31. Swifty Corporation borrowed $3150000 on January 1 on a 5- year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6400000 note payable and an 11%, 4- year, $12150000 note payable.

What is the weighted-average interest rate used for interest capitalization purposes?

A. 10.65%

B 11.00%

C 10.50%

D 10.85%