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You plan to build an apartment building with a 12 month construction building. The total...

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Accounting

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You plan to build an apartment building with a 12 month construction building. The total project cost is $12,000,000 linearly spread out over the 12 months. The equity partners fund the first three months of the project cost, followed by the lender funding the last 9 months. The lender provides an interest only loan at an annual interest rate of 6%. The interest accrued is equal to the monthly outstanding loan balance times the monthly interest rate. At end of the construction period how much construction interest is accrued, rounded to the nearest $1000

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