Suppose you borrowed $80,000 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. $13,507.46

b. $13,501.26

c. $13,513.66

d. $13,495.06

e. $13,488.86