A real estate developer will build a small office complex in Montreal. The project has a total budget of $1,300,000 including interest estimated at $15,000. The expected cash flows are as follows (assume each cash flow occurs at the end of the quarter): Quarter 1: Land purchase: $200,000 Soft costs: $100,000 Hard costs: $200,000 Quarter 2: Soft costs: $100,000 Hard costs: $200,000 Quarter 3: Hard costs: $185,000 Quarter 4: Hard costs: $300,000 The lender is willing to provide a construction loan with a maximum LTC of 70% including interest. The interest rate is expected to be 5% per year throughout the development process and will be capitalized quarterly. a) What is the construction loan balance at the end of Quarter 4