On January 1, Year 1, The Pawms borrowed $200,000 to purchase a warehouse by agreeing to a 8%, 5-year note with the bank. Payments of $50,091.29 are due at the end of each year. The first payment will be made on December 31, Year 1. What is the interest expense for Year 1 and Year 2? (Round your answers to the nearest dollar.)

Multiple Choice

A. $3,200; $14,000

B. $16,000; $16,350

C. $16,000; $13,273

D. $20,625; $16,000