A $33,950 Loan at 10

Multiple Choice

A $33,950 loan at 10.6% compounded semi-annually is to be paid off by a series of $4,000 payments that will be made at the end of every six months. How much of the first payment will be credited towards reduction of the principal?

A) $2,660
B) $1,800
C) $1,290
D) $885
E) $2,201