On January 1, Year 1, Mahoney Company borrowed $171,000 cash from Sun Bank by issuing a 5 -year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31 , Year 1 . The annual payment on the loan equals $40,800. What is the amount of principal repayment included in the payment made on December 31, Year 1? Multiple Choice $13,680 $37,536 $40,800 $27,120