Royal Industries has budgeted the following information for January Cash Receipts Beginning Cash Balance Cash Payments Desired Ending Cash Cushion $41,100 $21,000 $51,400 $16,000 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 2.50% per month. The company had no debt before January 1st. The amount of interest paid in February would be Multiple Choice $1,600 $530 $100