Sandusky Company borrowed $29,000 from the Lakeside Bank by issuing a 8% three-year installment note. Sandusky agreed to repay the principal and interest by making annual payments in the amount of $11,252.97. Based on this information, the amount of the interest expense associated with the second payment would be:

$1,605.

$2,320.

$4,640.

$834.