Question: Dexter Construction Corporation is building a student condominium complex; it started construction on January 1 , Year 1 . Dexter borrowed $ 2 . 5

Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed $2.5 million on January 1 specifically for the project by issuing a 10%,5-year, $2.5 million note, which is payable on December 31 of Year 3. Dexter also had a 12%,5-year, $3 million note payable and a 10%,10-year, $1.8 million note payable outstanding all year. Calculate the weighted average interest rate on the non-construction-specific debt for Year 1.

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