Premier Company has budgeted the following information for June:

Cash receipts $542,000 Beginning cash balance $10,000 Cash payments $560,000 Desired ending cashbalance $50,000

If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments and interest is paid monthly at 1% on the first day of the following month. The company had no debt before June 1^st. The amount of interest paid on July 1 would be

• $800
• $580
• $500
• $442