Suppose you borrowed $10,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. By how much would you reduce the amount you owe in the first year?

Select the correct answer.

a. $1,709.26

b. $1,680.46

c. $1,694.86

d. $1,687.66

e. $1,702.06