why is the repayment 6000 and how do i calculate the interest of 490?

1. Damon Manufacturing has a policy that the ending cash balance in each month must be at least $4,000. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $130,000. The interest rate on these toans is 1% per month simple inter- est (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds bor- rowed during the quarter. Combined Cash Budget January $4,600 81,010 85.610 February $4,432 106,320 110.752 March $4,951 117,540 122491 Quarter $4,600 304,870 309.470 53,490 3,807 17,706 12,175 58,368 4,293 18,894 13,800 Cash balance, beginning Plus: cash collections (req. 1) Total cash available Less cash payments: DM purchases (req 4) Direct labor (req 5) MOH costs (reg 6) Operating expenses (req. 7) Tax payment Equipment purchases Total cash payments Ending cash before financing Financing Borrowings Repayments Interest payments Total financing Cash balance, ending 53,727 4,442 19,257 14,175 10,000 12,200 113.801 (3.049) 165,585 12,542 55,857 40,150 10,000 33,800 317.934 (8,464) 5,000 92.178 (6.568) 16,600 111.955 10,536 11,000 8,000 (6,000) (490) (6,490) $4,046 19,000 (6,000) (490) 12 510 $4,2016 11,000 $4,432 8,000 $4,951