Stellar Company is constructing a building. Construction began on February 1 and was completed on December…

Stellar Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
$5,040,000 on March 1, $3,360,000 on June 1, and $8,400,000 on
December 31.

Stellar Company borrowed $2,800,000 on March 1 on a 5-year, 12%
note to help finance construction of the building. In addition, the
company had outstanding all year a 8%, 5-year, $5,600,000 note
payable and an 11%, 4-year, $9,800,000 note payable. Compute
avoidable interest for Stellar Company. Use the weighted-average
interest rate for interest capitalization purposes.
(Round “Weighted-average interest rate” to 4 decimal
places, e.g. 2.5125 and final answer to 0 decimal places, e.g.
5,275.)
What is Avoidable Interest?