What is the average mortgage rate for Laurel's two mortgages?

To find the average mortgage rate for Laurel's two mortgages, the calculation involves determining the total amount of interest rates and dividing that by the number of mortgages. If Laurel has two mortgages with different interest rates, the sum of these rates will be calculated first. For instance, if one mortgage has a rate of 5.0% and the other has a rate of 6.0%, you would add these rates together (5.0 + 6.0 = 11.0) and then divide by 2 (11.0 / 2 = 5.5%).

If the final result, rounded to one decimal place, is 5.5%, this confirms the choice of the first answer. The rounding process ensures that any decimal beyond the first decimal place doesn't affect the averaged result.

It's crucial in mortgage assessments to ensure an accurate calculation of average rates, as they can substantially impact financial planning and borrowing strategies. Therefore, understanding how to calculate the average is critical for anyone working in finance or real estate.