On January 1, 2020, Ann Price loaned $173745 to Joe Kiger. A zero-interest-bearing note (face amount, $225000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. The present value of $225000 at 9% for three years is $173745. What amount of interest income should Ms. Price recognize in 2020?

a. $20250.

b. $15637.

c. $42100.

d. $60750.