Calculating Avoidable Interest Weighted average accumulated expenditures are $960,000 on a project for which work steadily progressed during the current year. The following debt was outstanding during the current year. Construction loan $240,000 at 10% Note payable Mortgage payable $1,200,000 at 8% $360,000 at 12% a. Compute the weighted average interest rate on the general debt. Calculation of weighted average interest rate General Debt $ Numerator + Denominator = $ Rate % b. Calculate avoidable interest for the purpose of interest capitalization. Note: Use the interest rate calculated above EXACTLY as shown in your calculations below. Note: Round dollar amounts to the nearest whole dollar. Calculation of Avoidable Interest Weighted Average Accumulated Debt Category Expenditures Specific Debt $ General Debt $ Avoidable Interest Rate Interest % $ % $