Lear Inc. has $950,000 in current assets, $450,000 of which are considered permanent current assets. In addition, the firm has $1,000,000 invested in capital assets.

As an alternative, Lear might wish to finance all capital assets and permanent current assets plus half of its temporary current assets with long-term financing costing 9 percent. Short-term financing currently costs 5 percent.

What are its total yearly interest costs