Collins Company Borrowed $1,250,000 from BankTwo on January 1, 2016

Multiple Choice

Collins Company borrowed $1,250,000 from BankTwo on January 1, 2016 in order to expand its mining capabilities. The five-year note required annual payments of $325,545 and carried an annual interest rate of 9.5%. What is the balance in the notes payable account at December 31, 2017 after the annual payment?

A) $1,250,000
B) $816,765
C) $1,043,205
D) $1,012,500