On 1/1/16, the GRF Company performed services, and accepted a $10,000, 4%, 5-year note receivable with interest to be paid annually on December 31 through 12/31/20. The principal will be paid in full on 12/31/20. ABC's imputed interest rate is 8% and the effective amortization method is used. Total approximate Interest Revenue over the life of this note will be:

Select one:

a.

.

$2,000

b.

$2,274

c.

$4,274

d.

$1,597

e.

$3,597