On September 1, 2006, ABC Company borrowed $200,000 to finance the purchase of a building. The terms of the mortgage require payments of $3,000 to be made at the end of every month with the first payment being due on September 30, 2006. The length of the mortgage is ten years, and the mortgage carries an annual interest rate of 12%. The balance in the mortgage payable account at December 31, 2006 after the fourth payment is made would be closest to:

Question 3 options:

A)

$194,280

B)

$188,000

C)

$196,970

D)

$196,000

E)

$195,940