On January 1, Pablo Borrows $5,000 with a Fixed Interest

Multiple Choice

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's first loan payment would be interest charged for January, the first month of the loan?

A) $40.09.
B) $41.67.
C) $42.98.
D) $43.67.