Jade's startup, Prodigy Construction, issued $28,000 in common stock to stockholders on January 15th of Year 1. On May 1st of Year 1, the company took out a loan for $9,000. On August 30th, Year 1, the company issued a $4,000 dividend to stockholders. On December 31st, Year 1, the business recognized accrued interest expense from the loan. With a one-year term and an annual interest rate of 13%, what is the balance of the interest payable account on December 31st, Year 1?

A. $780.00

B. $432.75

C. $682.50

D. $731.25