1. Your Corporation issues a 5-year long-term notes payable for $250,000 on 1/1/17. The note provides for 3% annual interest and four equal annual payments of interest and principal of $ 54,589 on December 31 of each year, beginning in 2017. How much of the first payment would reduce principal?

A. $7,500

B. $48,501

C. $47,089

D. $6,087