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. The company had no debt before June 1. what will be the amount of interest paid on July 1 ? 

Cheyenne Company has budgeted the following information for June: Cash receipts $279,000 Beginning cash balance 7,000 Cash payments 292,000 Desired ending cash balance 27,000