Currie Company borrowed $16,000 from the Sierra Bank by issuing a 10% three-year note. Currie agreed to repay the principal and interest by making annual payments in the amount of $4,621. Based on this information, the amount of the interest expense associated with the second payment would be: (Round your answer to the nearest dollar.)

Multiple Choice

$866.

$1,298.

$1,600.

$4,621.