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Swifty Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of $4,280,000$ on January $1,2022.$ Swifty expected to complete the building by December $31,2022.$ Swifty has the following debt obligations outstanding during the construction period.

Construction loan$-14\%$ interest, payable semiannually, issued December $31,20211,740,000$

Short$-$term loan$-12\%$ interest, payable monthly, and principal payable at maturity on May $30,20231,392,000$

Long$-$term loan$-13\%$ interest, payable on January $1$ of each year. Principal payable on January $1,2026870,000$

$($a$)$

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Assume that Swifty completed the office and warehouse building on December $31,2022,$ as planned at a total cost of $4,524,000.$ The following expenditures were made during the period forthis project: January $1,870,000$; April $1,1,270,000$; July $1,1,670,000$; and October $1,560,000.$ Excess funds from the construction loans were invested during the period and earned $18,800$ of investment income. Compute the amount of borrowing costs to be capitalized for this project. $($Use interest rates rounded to $2$ decimal places, e$.$g$.7\mathrm{.}58\%$ for computational purposes and round final answers to $0$ decimal places, e$.$g$.5,275.)$

Borrowing costs

$$enter the borrowing costs in euros

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