Bonita Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6350000 on March 1, $5260000 on June 1, and $8550000 on December 31. Bonita Industries borrowed $3200000 on January 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 11%, 3-year, $6370000 note payable and an 12%, 4-year, $12050000 note payable. What is the weighted-average interest rate used for interest capitalization purposes?
