1. Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2019. The note agreement will require $1 million in annual payments starting on December 31, 2019 and continuing for a total of four more years (final payment December 31, 2023). Kenworthy is charging Alden Trucking Company the market interest rate of 10%. The present value is therefore calculated as $3,169,900.

What is the interest expense for the year 2019?

A) $316,990.

B) $329,080.

C) $400,000.

D) $279,080.