Procter micro-comp inc. requires $1,200,000 in financing overthe next two years. The firm can borrow the funds for two years at9.5 percentinterest per year. Mr Procter decides to do economic forecastingand determines that if he utilizes short-term financing instead.,hewill pay 6.55percent interest in the first year and 10.95 percent interest inthe second year.. Determine the total two-year interest cost undereach plan. Which plan is less costly?