Suppose you borrowed $70,000 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. $11,790.50

b. $11,798.20

c. $11,821.30

d. $11,805.90

e. $11,813.60