Question $6$

$3\mathrm{.}45$ pts

Randle Inc. is constructing a building. Construction began on January $1$ and was completed on December $31.$ Expenditures were $$6,400,000$ on March $1,$$$5,280,000$ on June $1,$ and $$8,000,000$ on December $31.$ Rande Company borrowed $$3,200,000$ on January $1$ on a $5-$year, $12\%$ note to help finance construction of the building. In addition, the company had outstanding all year a $10\%,3-$year, $$6,400,000$ note payable and an $11\%,4-$year, $$12,000,000$ note payable.

The weighted$-$average interest rate used for interest capitalization purposes is closest to$?$

$11\%$

$10\mathrm{.}65\%$

$10\mathrm{.}5\%$

$10\mathrm{.}85\%$