Concord Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,848,000 on March 1, $1,248,000 on June 1, and $3,031,810 on December 31. Concord Company borrowed $1,136,530 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,091,200 note payable and an 10%, 4-year, $3,726,200 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Weighted-average interest rate 10.60 %
Concord Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,848,000 on March 1, $1,248,000 on June 1, and $3,031,810 on December 31. Concord Company borrowed $1,136,530 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,091,200 note payable and an 10%, 4-year, $3,726,200 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.) Weighted-average interest rate 10.60 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concord Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures
were $1,848,000 on March 1, $1,248,000 on June 1, and $3,031,810 on December 31.
Concord Company borrowed $1,136,530 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition,
the company had outstanding all year a 9%, 5-year, $2,091,200 note payable and an 10%, 4-year, $3,726,200 note payable. Compute
the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 7.58%.)
Weighted-average interest rate
10.60
%
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