As companies start off, they may not make profits right away. This could impact their cash position. As discussed in class regarding the cash budget, companies may have to borrow funds in order to meet minimum cash balances as required by creditors. There are interest fees associated with borrowing. Assume that in Year $1,$ the company borrowed $$60,000.$ In Year $2,$ the company could repay $$10,000.$ In Year $3,$ the company borrowed $$30,000.$ Assume that interest $(1\mathrm{.}5\%)$ is paid at the beginning of year on the debt outstanding. What is the interest paid at the beginning of Year $4?$

$$ $$1,350$

$$ $$450$

$$ $$1,200$

$$ $$750$