Brent Hill Company (see BEI0-21) borrowed $1 million on March I on a five-year, 12% note to help finance the building construction. In addition, the company had outstanding all year a $2-million, five-year, 13% note payable and a S3.5-million, four-year, 15% note payable. Calculate the appropriate capitalization rate on general borrowings that would be used for capitalization of borrowing costs.