Kennison, Inc. has prepared its third quarter budget and provided the following data:

	Jul	Aug	Sep
Cash collections	$49,000	$40,000	$47,000
Cash payments:
Purchases of direct materials	28,000	21,900	18,100
Operating expenses	12,500	9,100	11,500
Capital expenditures	13,700	24,500	0

The cash balance on June 30 is projected to be $4,100. The company has to maintain a minimum 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 and has to pay interest every month at an annual rate of 4%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. How much will the company have to borrow at the end of August?