ZIGBY MANUFACTURING

General and Administrative Expense Budgets

April, May, and June 2017

1. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,100.
2. Monthly general and administrative expenses include $13,000 administrative salaries and 0.5% monthly interest on the long-term note payable.
3. Long-term note payable508,000.
4. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale).
5. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month.

April May June Total

Salaries $13,000 $13,000 $13,000 $39,000

Interest on long-term note $2,525 $2,525 $2,525 $7,575

Total budgeted G&A expenses $15,525 $15,525 $15,525 $15,525

I am trying to figure out how was the interest on long term-note were calculated to get $2,525?