On December 1, Year 1, Bradley Corporation incurs a 18-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $1,800, which include interest computed at the rate of 9% per year. The first monthly payment is made on December 31, Year 1. The total liability related to this mortgage reported in Bradley's balance sheet at December 31, Year 1, is:

a. $199,700

b. $198,200

c. $200,000

d. $388,800