Question 6 3.45 pts Randle Inc. is constructing a building. Construction...

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Accounting

Question 6
3.45 pts
Randle Inc. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1,$5,280,000 on June 1, and $8,000,000 on December 31. Rande Company borrowed $3,200,000 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, $6,400,000 note payable and an 11%,4-year, $12,000,000 note payable.
The weighted-average interest rate used for interest capitalization purposes is closest to?
11%
10.65%
10.5%
10.85%
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