Company A is preparing its budget for the third quarter. The following information has been compiled:

Cash collections $50,000 $40,000 $48,000

Cash payments

Purchases of

inventory 31,000 22,000 18,000

Operating

expenses 12,000 9,000 11,600

Capital

expenditures 13,000 25,000 0

The cash balance at the end of the second quarter is projected to be $4,000. The company is required to maintain cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000. All financing transactions are assumed to take place at the end of the month. Loan balances should be repaid in increments of $5,000 when there is surplus of cash.

What amount of principle should the company repay to the bank at the end of September?