On January 1, 2016, Denver Company borrowed $25,000 by issuing a 5-year note to Capital Bank. The note had a 10% annual rate of interest. The loan agreement called for five equal payments of $6,595 on December 31 of each year 2016 through 2020. What is the principal balance on this installment note at the end of 2017 after the loan payment is recorded? (Hint: Use an amortization schedule to determine your answer.)

$13,129

$11,810

$20,905

$16,401