Nash Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,812,000 on March 1, $1,212,000 on June 1, and $3,007,840 on December 31. Nash Company borrowed $1,004,930 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,200,900 note payable and an 11%, 4-year, $3,365,100 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 %
Nash Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,812,000 on March 1, $1,212,000 on June 1, and $3,007,840 on December 31. Nash Company borrowed $1,004,930 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,200,900 note payable and an 11%, 4-year, $3,365,100 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 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nash Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
$1,812,000 on March 1, $1,212,000 on June 1, and $3,007,840 on December 31.
Nash Company borrowed $1,004,930 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the
company had outstanding all year a 10%, 5-year, $2,200,900 note payable and an 11%, 4-year, $3,365,100 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
%
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