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Please show how to calculate the interest for this problem. 2 Knox,...

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Accounting

Please show how to calculate the interest for this problem.

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2 Knox, Inc. is planning to end January with a cash balance of $46,000 and no outstanding debt. For February, budgeted cash receipts total $110,000 and budgeted cash disbursements total $120,000. The company has an arrangement with its bank to borrow any amount on the first of any month, but the bank requires cash payment of 1% monthly interest on the outstanding borrowing at the end of each month. Knox is heading into its busy season and would like to build its cash reserves. If the company desires a February minimum ending cash balance of $60,000, to the nearest dollar, the minimum amount they would need to borrow at the beginning of the month is closest to be: $ 4,000 $ 23,763 C. $ 24,243 70,708 None of the above A. B. S D. E

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