show work please!

On December 31, 1984. Smith borrowed $5,000 to be repaid in four years with level payments made at the end of every quarter. The first payment was made on March 31, 1985. The effective annual interest rate was 1%. What was the amount of interest paid in 1986? A Less than $130 B At least $130, but less than $133 At least $133, but less than $136 D At least $136, but less than $139 $139 or more