Your business has just taken out a 1-year installment loan for $72,500 at a nominal rate of 6.5% but with equal end-of-month payments. What percentage of the 2nd monthly payment will go toward the repayment of principal?

Select the correct answer.

a. 94.23%

b. 96.23%

c. 98.23%

d. 95.23%

e. 97.23%