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Question - ABC Company decided to construct a new building to be used as its company headquarters. On January 1, 2017, construction began on the project. On that same day, the company borrowed $4 million specifically for the project at an interest rate of 5%. The project was completed on June 30, 2018. Expenditures related to the project in 2017 are displayed below:
Date Amount
1/1/17 $1,200,000
3/31/17 $1,000,000
5/1/17 $2,400,000
8/31/17 $1,800,000
12/31/17 $1,100,000
In addition to the specific borrowing, ABC had two other loans outstanding for the entire year:
Required - Determine the weighted average interest rate of the other loans outstanding.
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