Question - A company is constructing a warehouse for business purposes. The construction began on 1/1/2011 and will be finished on 12/31/2011
Payments to the contractor have been made on the following dates: $147,547.22 on 3/1/2011 and $254,147.22 on 12/1/2011
The company had outstanding, all year loans: $324,000.00, 5.5%, 5-year note and $124,000.00, 8%, 2-year note
Based on the above information, what will be the avoidable interest?