terest Rate to Determine Interest Capitalization ample 9.7. Assume that Tesla did not finance the cost of the tram with a specific loan. Instead, it used a weighted-average of its debt outstanding. Here is how Tesla determined 12%, 2-year note 9%, 10-year bonds 7.5%, 20-year bonds Weighted-Average Interest Rate = Principal $ 600,000 2,000,000 5,000,000 $7,600,000 Total Interest $627,000 Total Principal $7,600,000 est rate, what is the amount of interest cost that Tesla should capitalize for the year ended December 31, 2025? Interest $ 72,000 180,000 375,000 $627,000 8.25%