could someone explain this plz

Question 5 (1 point) Royce Inc. has a December 31 fiscal year-end date. Royce Inc. borrowed $150,000 from GE Capital to purchase Equipment on February 1, 2016. No payments were made during 2016. Royce Inc. will make an equal repayment of $50,000 for the principal amount of the borrowing on every February 1. The first principal repayment will occur on February 1, 2017. At the time of each principal repayment, the interest will also be paid at the same time. The loan carries an interest rate of 15%. With respect to the above loan agreement, what is the amount of the interest expense that should be reported on Royce Inc.'s income statement as at December 31, 2017? For your answer, make sure to put the number without dollar signs ($), commas (,), periods (.), and decimal points. Again, please state the number only without dollar signs, commas, periods, and decimal points for your answer. For example, if the answer happens to be 12345, then you must simply put 12345