The Beta Company made a sale for $340,000 on credit. It accepted a note receivable from the customer, payable in 3 years. A 4% interest is due from the customer every December 31st. The customers borrowing rate is 6%. The interest revenue to be recorded on the note receivable at the end of the first year is (ignore decimals in your calculations):

Select one:

a. $12,872

b. $19,309

c. $13,600

d. $22,808