You Borrow $50,000 on a Line of Credit to Finance

Multiple Choice

You borrow $50,000 on a line of credit to finance your start-up company, to be repaid in three equal, annual payments.Interest on the line of credit is 10% interest.Approximately how much of the principal is paid off on the first payment?

A) $5000.00
B) $16,666.67
C) $15,105.74
D) $20,105.74