Autobahn Motorsports Co. requires $1, 000,000 in financing over the next two years. The firm can borrow the funds for two years at 11 percent interest per year. Mr. Autobahn decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 9.75 percent interest in the first year and 15.50 percent interest in the second year. Determine the total two-year interest cost under each plan. Which plan is less costly?

Put the dollar amount of the less costly plan in thge answer box below.