On January 1, 2020, a company borrowed $28,371 and issued a note payable due December 31, 2025 for $50,000. The company will not make periodic payments, but will pay the $50,000 in 2025. The note has a non-interest bearing note. The company uses the effective interest method to account for the document. Determine the interest expense that the company will recognize in the year ended December 31, 2022.

a. $0, because the promissory note has no stipulated interest.

b. $0, because all interest is paid in 2025.

c. $4,326

d. $4,271