Sheffield Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $$11,000,000$ on January $1,2025.$ Sheffield expected to complete the building by December $31,2025.$ Sheffield has the following debt obligations outstanding during the construction period.

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

$$4,400,000$

Short$-$term loan$-\frac{10}{\%}$ interest, payable monthly, and principal payable $at$ maturity $on$ May $30,2026,3,300,000$

Long$-$term loan$-\frac{11}{\%}$ interest, payable $on$ January $1of$ each year; principal payable $on$ January $1,2029,2,200,000$

Long $($a$)$

$($a$)$

Your answer is incorrect.

Assume that Sheffield completed the office and warehouse building on December $31,2025,$ as planned, at a total cost of $$11,440,000,$ and the weighted$-$average amount of accumulated expenditures was $$7,920,000.$ 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$.5,275.)$