Royal Industries has budgeted the following information for January:

Cash Receipts	$ 41,000
Beginning Cash Balance	$ 20,000
Cash Payments	$ 51,100
Desired Ending Cash Cushion	$ 15,000

If there is a cash shortage, the company borrows money. If a surplus occurs funds are used to repay loans or to invest in short-term assets. All borrowing, repayments, and interest payments occur on the last day of the month. The interest rate is 2.00% per month. The company had no debt before January 1st. The amount of interest paid in February would be

Multiple Choice

$1,500.

$150.

$510.

$102.