On January 1, Year 1, Mahoney Company borrowed $169,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $40,750. What is the amount of principal repayment included in the payment made on December 31, Year 1? 

A. $27,230
B. $40,750
C. $37,490
D. $13,520


Answer: A

Business

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