Cheyenne Company has budgeted the following information for June:

Cash receipts	$ 287,000
Beginning cash balance	9,000
Cash payments	304,000
Desired ending cash balance	29,000

If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month.

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The company had no debt before June 1. The company would have borrowed money on June 1 based on its budgeted needs.

In that case, the amount expected amount of interest to be paid on July 1 would be: