Step by step would be nice, but i have a decent grasp of everything except for interest it seems. please explain where i went wrong with my calculations (or clearly explain the correct way). Thanks!!

Picture 1: The question

Picture 2: My first attempt using the formula of borrowings (40000) * quarterly interest rate (3%) * quarters (4) = 4800

My second attempt using formula of borrowings (40000) * interest rate (3%) * quarters (3) = 3600

Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: The company's beginning cash balance for the upcoming fiscal year will be $25,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficlencies should be indicated by a minus sign.) Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completic Answer is complete but not entirely correct. Garden Dopot Cash Budget Prev 1 of 2 . Hex > P A a mewar le ramnlate but nat entirelv correct