Assume that an individual borrowed $150,000 on January 1 of Year 1, at 6% interest per annum. On December 31, of Year 1, an $12,000 payment is made. On December 31, of year 2, another $12,000 payment is made. Using normal assumptions about interest and principal reduction, how much is the unpaid balance of the persons loan after the second payment?

Select one:

a. $144,000

b. $143,820

c. $150,000

d. $132,000