N+ 1 year loan interest during the construction period = total loan at the beginning of the year * interest rate+1/2* current loan amount * interest rate.
Loan interest in the first year of construction = 1/2*300*0.06=9.
Loan interest in the second year of construction = (300+9) * 0.06+1/2 * 400 * 0.06 = 30.54.
Loan interest for the second year of construction = (300+9+400+30.54) * 0.06+1/2 * 500 * 0.06 = 59.37.
Loan interest during construction period =9+30.54+59.37=98.9 1.
C