A five year, 4% , $80000 note payable is issued on January 1. Terms include fixed annual principal payments of \$16000 plus interest on the outstanding balance. The entry to record the first installment payment will include a:

A debit to notes payable of $16000

B credit to interest expense of $3200

C credit to notes payable of $12800

D debit to cash of $16000

Please advise which question is correct