HdG,IncAccepts a $100,000,5% Note from Aberdeen Unlimited on 4/1/16

HdG,Inc.accepts a $100,000,5% note from Aberdeen Unlimited on 4/1/16.,and lends money to Aberdeen.Aberdeen agrees to pay 5 equal annual payments on this note beginning 3/31/17.The market rate at the date of issuance of this note was 5%.How much Interest Revenue will HdG record on 12/31/16,the end of its fiscal year?

A) HdG will not record Interest Revenue until it receives the first installment payment on this note on 3/31/17.
B) $2,500
C) $5,000
D) $3,750