Diamond Company borrowed $500,000 from Bank Two on January 1, 2016 in order to expand its mining capabilities. The five-year note required annual payments of $130,218 and carried an annual interest rate of 9.5%.

14. What is the balance in the notes payable account at December 31, 2016? A) $500,000 B) $326,706 C) $417,282 D) $405,000