SageFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $12,500,000 on January 1, 2020, Sage expected to complete the building by December 31, 2020. Sage has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $5,000,000 Short-term loan-10% Interest, payable monthly and principal payable at maturity on May 30, 2021 3.750,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2.500.000 TOU Assume that Sage completed the office and warehouse building on December 31, 2020, as planned at a total cost of $13,000,000, and the weighted average amount of accumulated expenditures was $9.000.000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e-s. 7.58% for computational purposes and round final answers to decimal places, s. 5,275.) $ Avoidable Interest