Financing: $-$ Management requires a cash balance at the end of each month of $$10,000.$ If necessary, management can borrow money from the bank at an annual interest rate of $4\%$ in increments of $$1,000.$ They will repay the loan in increments of $$1,000$ any month they have excess

cash.

$I=PRT=$$ loans $x\%$ months

Borrowing occurs at the start of the month and repayments occur at the end of the month. Interest is paid when the loan is repaid $($and only on the amount that is being repaid$).$