Cook Builders borrowed $150,000 from Bank B on July 1 of Year 1. The annual interest rate on the loan is 11%. Cook Builders will repay the entire loan (principal and interest) after two years on June 30 of Year 3. Cook Builders will pay no cash to Bank B between July 1 of Year 1 and June 30 of Year 3. What is Cook Builders interest expense with respect to this loan in Year 3?

Group of answer choices

$5,500

$8,250

$8,000

$11,000

$5,000