On January 1, 2020, Ann Price borrowed $187,825 from Joe Kiger issuing a 3 year, zero-interest-bearing note (face amount, $250,000). The prevailing rate of interest for a loan of this type is 10%. The present value of $250,000 at 10% for three years is $187,825. What amount of interest expense should Ms. Price recognize in 2021?

a $25,000.

b $20,661

c $18,783.

d $16,904