You borrow $5,900 at 10% per year and will pay off the loan in three equal annual payments starting 1 year after the loan is made. The end-of-year payments are $2,372.48. Which of the following is true for your payment at the end of year 2?

Which option is true:

(a) Interest is $215.68 and principal is $2,156.80.

(b) Interest is $411.75 and principal is $1,960.73.