The first component is Relative Weightage and the second component is Value inputs. It also has a 500000 loan outstanding on which it pays an 8 interest rate. The formula for the weighted average cost method is as follows.
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It also has a 500000 loan outstanding on which it pays an 8 interest rate. To Calculate Weighted Average Formula we need Relative Weightage and Value. Find the sum of all weights. The next step to finding the weighted average of a data set that doesnt.