HdG, Inc. accepts a $100,000, 5% note from Aberdeen Unlimited on 4/1/16., and lends money to Aberdeen. Aberdeen agrees to pay 5 equal annual payments on this note beginning 3/31/17. The market rate at the date of issuance of this note was 5%. How much Interest Revenue will HdG record on 12/31/16, the end of its fiscal year?

A. HdG will not record Interest Revenue until it receives the first installment payment on this note on 3/31/17.

B. $5,000

C. $2,500

D. $3,750