On December 1, 2015, Fine Products borrowed $80,000 on a 4%, 8-year note with annual installment payments of $10,000 plus interest due on December 1 of each succeeding year. Which of the following describes the first installment payment made on December 1, 2016?

$10,000 principal plus $400 interest

$3,200 interest only

$10,000 principal plus $3,200 interest

$10,000 principal plus $10,000 interest