Montreal Express Inc. (MEI) purchased a waste management system on September 20, 20X7 and paid for the purchased by issuing a $100,000, 0% note payable to the supplier due on September 20, 20X8. The market rate of interest for borrowing of this nature is 5%. What will be the amount charged to interest expense for MEI's year-ended December 31, 20X7 pertaining to this note payable?

$1,331

$1,344

$1,397

$1411