The Construction began on January 1, 2019 and the building was completed on December 31, 2020.

January 1, 2019 $1,400,000	January 1, 2020 $3,000,000
March 31, 2019 $900,000	April 30, 2020 $900,000
June 30, 2019 $800,000	September 30, 2020 $800,000
July 31, 2019 $600,000	Building complete December 31, 2020
September 1, 2019 $750,000

On January 1, 2019, ALMO obtained an $8,000,000 construction loan with a 5% interest rate. The loan was outstanding for 2019 and 2020. The companys other interest-bearing debt included two long-term notes of $4,000,000 and $4,000,000 with interest rates of 8% and 7%, respectively. Both notes were outstanding during all of 2019 and 2020. Interest is paid annually on all debt. The companys fiscal year-end is December 31.

Question 1)

Using the information above, if the average approach is used the amount of interest capitalized for 2019 should be? (round to the closest whole dollars with no dollar sign but include commas).

Calculate your interest rate to this level X.XX%