Rae Company purchased a new vehicle by paying $10,900 cash on the purchase date and agreeing to pay $3,900 every three months during the next five years. The first payment is due three months after the purchase date. Rae's incremental borrowing rate is 4%. The liability reported on the balance sheet as of the purchase date, after the initial $10,900 payment was made, is closest to

a) 78,700

b) 70,378

c) 82,278

d) 88,900