Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.5 million on March 1, $1.2 million on June 1, and $3 million on December 31. Tamarisk Company borrowed $1.0 million on March 1 on a five-year, 12% note to help finance the building construction. In addition, the company had outstanding all year a $1-million, five-year, 15% note payable and a $3.4-million, four-year, 18% note payable. (a1) Calculate the company's avoidable borrowing costs assuming Tamarisk follows IFRS. (Do not round intermediate calculations. Round capitalization rate to 2 decimal places, e.g. 52.75% and final answer to 0 decimal places, e.g. 5,275.)