ABC Firm is a specialty retail firm that sells only one product. It prepares a rolling budget for the upcoming three months. At the end of October, the cash budget contained the following summary information:

November December January Cash Available 86,000 58,000 73,000 Total Cash Payments 69,000 44,000 66,000 Cash Over or Short 17,000 14,000 7,000

You may assume that all the numbers currently included are correctly computed. The firm has a policy of maintaining a minimum cash balance of $15,000. At the end of October, a loan of $6,000 was outstanding. The loan carries an interest rate of 2%. Interest payments must be made each month based on the balance outstanding at the end of the prior month.

How much, if any, can the firm pay on its loan in November ?

Multiple Choice $0 $2,000 $1,990 $1,880