A shipbuilder is constructing an ocean liner for 418 million that will accommodate 650 passengers. The construction will take one year and will be funded as follows. January 1, 110 million, July 1, 130 million, September 1, 178 million. Construction interest fir the ship is at 5%. Howe much interest can be capitalized to the ocean liner?

1. 8,680,000

2. 10,850,000

3. 11,716,667

4. 21,700,000