Weighted average cost of capital Personal Finance Problem John Dough has just been awarded his degree in business. He has three education loans outstanding. They all mature in $5$ years and he can repay them without penalty any time before maturity. The amounts owed on each loan and the annual interest rate associated with each loan are given in the following table:

John can also combine the total of his three debts $($that is$,$ $$64,000)$ and create a consolidated loan from his bank. His bank will charge an annual interest rate of $5\mathrm{.}5\%$ for a period of $5$ years. Should John do nothing $($leave the three individual loans as is$)$ or create a consolidated loan $($the $$64,000$ question$)?$

The weighted average annual interest rate on John's current loan porttolio is

$\%.($Round to two decimal places.$)$

John should

$($Select from the drop$-$down menu.$)$

Consolidate the three loans into one

do nothing and leave the three indivisual loans as is

Data table

$($Click on the icon located on the top$-$right comer of the data table below in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[$Loan$,$Balance due,$\backslash$table$[[$Annual$],[$interest rate$]]],[1,$$$29,000,6\mathrm{.}2\%$