Suppose you borrowed $40,000 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. $8,731.35 b. $8,762.15 c. $8,754.45 d. $8,746.75 e. $8,739.05