Question: Calculating Avoidable Interest Weighted average accumulated expenditures are $720,000 on a project for which work steadily progressed during the current year. The following debt was

Calculating Avoidable Interest

Weighted average accumulated expenditures are $720,000 on a project for which work steadily progressed during the current year. The following debt was outstanding during the current year.

Construction loan $180,000 at 10%
Note payable $900,000 at 8%
Mortgage payable $270,000 at 12%

Calculate avoidable interest for the purpose of interest capitalization.

Note: Round interest rate percentage used in your calculation to two decimal places (for example, enter 2.05 for 2.04555%).

Avoidable interest $Answer

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