3. University of Missouri (Mizzou) is building an 86,000 -square foot indoor practice facility for the Missouri Tigers. The new facility is named as the Stephens Indoor Facility. The project broke ground on January 1, 2022 and is estimated to be completed in 20 months on August 31, 2023. During 2022, Mizzou incurs the following costs related to the construction of the new facility: Assume University of Missouri obtained a $2,500,000 construction loan specifically for this project and the interest on the loan is 8.5%. In addition, Mizzou has two other interest-bearing loans. The first loan has a total amount of $1,000,000 and an interest rate of 5% while the second loan has a total amount of 1,500,000 and an interest rate of 9%. All of the loans were outstanding throughout the entire fiscal year 2022. Assume University of Missouri is allowed to capitalize interest on selfconstructed assets and the school's fiscal year ends on December 31. a. Assume Mizzou uses the specific interest method for interest capitalization. What is the amount of interest capitalized for 2022? Round your answer to two decimal places (1 point)