Suppose a Construction Project Anticipates End-Of-Month Draws of $400,000, $300,000

Multiple Choice

Suppose a construction project anticipates end-of-month draws of $400,000, $300,000, and $600,000 consecutively. What will be the balance owed at the end of the third month if the interest on the loan is 7% per annum compounded monthly) , and no payments of either principal or interest are required during the construction period?

A) $1,306,430.
B) $1,314,051.
C) $1,378,960.
D) Cannot be computed with the information given.