Chico Company Borrowed $40,000 on a Four-Year,8% Installment Note

Chico Company borrowed $40,000 on a four-year,8% installment note.How will this transaction affect Chicos financial statements?

A) Cash and installment notes payable increase by $43,200
B) Cash and interest payable increase by $40,000
C) Cash and interest payable increase by $43,200
D) Cash and installment notes payable increase by $40,000