On January 1, 20X1, Sterling Inc. borrowed $100,000 cash from the Stevens Creek Bank on a note that carried a 6 percent annual rate of interest and a five-year term. The loan is to be repaid in annual payments of $23,741.69 on January 1 each year. The amount of the January 1, 20X2, payment applied to interest and to principal would be

a. $6,000 / $94,000

b. $17,741.69 / $94,000

c. $4,935.50 / $82,258.31

d. $6,000 / $17,741.69