When you build a new house, you sometimes get a “construction loan” which is a temporary line of credit out of which you pay construction costs as they occur. At the end of the construction period,...

When you build a new house, you sometimes get a “construction loan” which is a temporary line of credit out of which you pay construction costs as they occur. At the end of the construction period, you then replace the construction loan with a regular mortgage on the house. During the construction loan, you only pay each month for the interest charged against the actual amount borrowed so far. Assume that your house construction project starts at the beginning of April, and is complete at the end of six months. Assume that the total construction cost will be $300,000 with the costs occurring at the beginning of each month in $50,000 increments. The construction loan charges 6% interest. Estimate the total interest payments that must be paid over the life of the construction loan.