Arlington Company is constructing a building. Construction began on January 1

and was completed on December 31. Expenditures were $6,400,000 on March 1,

$5,280,000 on June 1, and $8,000,000 on December 31. Arlington Company

borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance

construction of the building. In addition, the company had outstanding all year a

10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note

payable.

What is the avoidable interest for Arlington Company?