How is the Weighted Interest Rate Calculated?

How is the Weighted Interest Rate calculated in DDI Connect?

• Multiply each investment or loan by the interest rate. This gives you the per loan/per investment weight factor
• Add weight factors together
• Total your investment or loan amounts
• Divide the weight factor total by the investment or loan amount total, and multiply the result by 100. This will give you the weighted average interest rate

For example, you have an investment of $15,000 at 2.25% and another of $20,000 at 3%

• Multiply 15000 x 2.25% to = 337.5
• Multiple 20000 x 3% to = 600
• Add 600 to 337.5 to = 937.5
• Add $15,000 to $20,000 to = $35,000
• Divide 937.5 by 35000 to = .027
• Multiply that by 100 to get 2.7

2.7 will be your weighted investment interest rate