On 1 December, Year 1, Bradley Corporation Incurs a 15-Year

On 1 December, Year 1, Bradley Corporation incurs a 15-year $200 million mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2.4 million, which include interest computed at the rate of 12% per year. The first monthly payment is made on 31 December, Year 1.
-How much of the first payment made on 31 December, Year 1, represents interest expense?

A) $2,400,000.
B) $ 400,000.
C) $2,304,000.
D) $2,000,000.