J . Management wants to maintain a minimum cash balance of $30, 000 . The Company has an agreement with a local bank that allows the company to borrow in increments of $1 , 000 at the beginning of each month . The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded . The company would , as far as it is able , repay the loan plus accumulated interest at the end of the quarter