See full answer below. Step 2 Calculate the SUMPRODUCT ie multiply each value by its weight and then calculate their sum in order to get the sum-product. Weighted Average Accumulated Expenditure 50000 x 1112 75000 x 512 45833 31250 77083 Step 3 Determine the interest in the specific borrowings and from the general funds.
The arithmetic mean formula is the most commonly used form of simple averaging where you add each number together and then divide the result by the total amount of numbers in the set.
Step 3 Calculate the sum of the weights in another cell. W relative weight x value. Calculating Weighted Average When the Weights Add up to 1 1. Aggregate interest payments Aggregate debt outstanding Weighted average interest rate For example a business has a 1000000 loan outstanding on which it pays a 6 interest rate.