On August 1, 2017, Renaud Company finished architectural design services and accepted in exchange a promissory note with a face value of $400,000 and a maturity date of July 31, 2022.The stated rate of interest is 8% with interest receivable each July 31 through the maturity date.An effective interest rate of 10% is implicit in the agreed-upon price.The effective amortization method is used.

Renaud's total interest revenue to be recorded on the income statements during the years 2017 through 2022 will be approximately:

Select one:

a.$128,058

b.$191,942

c.$160,000

d.$200,000

e.$190,326