Please explain how to calculate the Interest on the Loan

MOTORS CORPORATION Cash Budget July August September Beginning cash balance $ 34,000 $ 30,000 30,000 Add: Cash receipts 85,000 111,000 150,000 Total cash available 119,000 141,000 180,000 Less: Cash payments for All items excluding interest 113,000 99,900 127,400 Interest on loan 80 X O X 0 x Total cash payments 113,080 99,900 127,400 Preliminary cash balance 5,920 41,100 52,600 Additional loan (loan repayment) 24,000 11,100 X (22,600) X Ending cash balance $ 29,920 $ 30,000 30,000 Loan activity Loan balance, beginning of Month $ 24,000 12,900 Additional loan (loan repayment) 24,000 11,100 (22,600) Loan balance, end of month $ 24,000 $ 12,900 (9,700)Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30000 cash balance at each month-end. ll necessary. the company borrows to meet this requirement at a cost of 2% interest per month [paid at the end of each month}. Any preliminary cash balance above $30000 at month-end is used to repay loans. The cash balance on July 1 is $34,000. and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments [other than for interest on the loan and loan activity} follow. Julyr August September cash receipts $ 85, Bee 3'; 111, see $ 159, 000 cash payments 113, sea 99, see 12?, 40a Prepare a cash budget for July. August. and September