A small, family-owned bakery has received a contract to supply bread to several play centers operated in nearby malls by a multi-national entertainment company. The total dollar volume of the business is $200,00 per year and the payment terms are Net 60 days.

The bakery owners are understandably excited about the new business opportunity. But they are already borrowing money at 6.5% to finance investments needed to grow the business. The new contract will tie up more money in accounts receivable for the new contract, which will require them to increase the size of their loan.

What is the annual interest charge to carry the above balance as part of the bakerys small business loan? (Give your answer to the nearest whole dollar without commas, words or a dollar sign.)