Lancer Companys summary of its budget cash flows is given below:

1^st Quarter 2^nd Quarter 3^rd Quarter 4^th Quarter

Total receipts $180,000 $340,000 $230,000 $260,000

Total cash disbursement $240,000 $270,000 $200,000 $250,000

Beginning cash balance for upcoming fiscal year, $16,000

Minimum cash balance required, $15,000

Interest rate 2% per quarter.

Repay loan at the end of 2^nd quarter. Interest is due on any principal at the time it is paid. Interest is not compounded. How much is the total interest expense paid if a loan was made ?

A. $ 2,360
		B. $ 2,600
		C. $ 1,180
		D. None of the above