A company is constructing a warehouse for business purposes. The construction began on
1/1/2011 and will be finished on 12/31/2011
Payments to the contractor have been made on the following dates: $147,547.22 on 2/1/2011 and
$254,147.22 on 12/1/2011
The company had outstanding, all year general purpose loans: $324,543.22, 5.50%, 5-year note
and $132,435.77, 7.25%, 2-year note
Based on the above information, what will be the avoidable interest?