On January $1,$ Year $1,$ Mahoney Company borrowed $$166,000$ cash from Sun Bank by issuing a $5-$year, $8\%$ term note. The principal and interest are repaid by making annual payments beginning on December $31,$ Year $1.$ The annual payment on the loan equals $$41,576.$

What is the amount of principal repayment included in the payment made on December $31,$ Year $1?$

Multiple Choice

$$40,675$

$$13,280$

$$28,296$

$$37,421$