Suppose you borrowed $95,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment?

Select the correct answer.

a. $78,955.95

b. $78,989.85

c. $78,967.25

d. $78,944.65

e. $78,978.55