Terrapin, Inc. issues bonds with a par value of $20,000,000 on January 1, 2020. The bonds have an annual coupon rate of 6%, pay interest annually, and will mature in 7 years. If the market rate of interest on the bonds is 9% per year, then what is the annual interest expense that the company will report for the year ending December 31, 2024? [Note: the company uses the effective interest method of amortization.]

	a.	$1,200,000
	b.	$1,589,959
	c.	$1,725,008
	d.	$1,663,310
	e.	$1,615,095