RECOMMENDED!!ABC Company decided to construct a new building
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:DateAmount1/1/17$1,200,0003/31/17$1,000,0005/1/17$2,400,0008/31/17$1,800,00012/31/17$1,100,000In addition to the specific borrowing, ABC had two other loans outstanding for the entire year:· $1,500,000 @ 9%· $4,500,000 @ 6%A) Determine the weighted average interest rate of the other loans outstanding.
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