Jordan obtained a $160,000 line of credit from Craig Bank on January 1, Year 1. Jordan agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Jordan borrows or repays on the first day of each month.

	Amt Borrowed (Repaid)			Prime Rate for the Month
1-Jan	$	40,000			4.0	%
1-Feb		(10,000	)		4.5	%
1-Mar		40,000			5.0	%

What is the amount of interest expense recognized in March?