41. On 1 January, 2015, Hikers Inc., a U.S.-based company, borrowed 200,000 on a two-year note at a per annum interest of 4.5%. The spot rate on this day was $1.65 per pound. The spot rate on 31 December, 2015, was $1.64 per pound. The journal entries to account for this foreign currency borrowing will include:

D. a debit to Interest Expense for $14,760 on December 31, 2015.

(can someone please explain the steps to find this answer? Thank you.)