Novak Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost

of $$15,000,000$ on January $1,2025.$ Novak expected to complete the building by December $31,2025.$ Novak has the following debt

obligations outstanding during the construction period.

Construction loan$-12\%$ interest, payable semiannually, issued December $31,2024$

$$6,000,000$

Short$-$term loan$-10\%$ interest, payable monthly, and principal payable at maturity on May $30,2026$

$4,500,000$

Long$-$term loan$-11\%$ interest, payable on January $1$ of each year; principal payable on January $1,2029$

$3,000,000$

$($a$)$

Assume that Novak completed the office and warehouse building on December $31,2025,$ as planned, at a total cost of

$$15,600,000,$ and the weighted$-$average amount of accumulated expenditures was $$10,800,000.$ Compute the avoidable

interest on this project. $($Use interest rates rounded to $2$ decimal places, e$.$g$.7\mathrm{.}58\%$ for computational purposes and round final

answers to $0$ decimal places, e$.$g$.5,275.)$

Avoidable interest $