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

$$37,536$

$$27,120$

$$40,800$

$$13,680$