On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note or $80,000 at

Question:

On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note ±or $80,000 at 15%. The note will be paid in equal annual installments o± $21,139, beginning January 1, 2016. Calculate the portion of principal amount paid on the third installment.
A). $12,086
B). $12,000
C). $21,139
D). $9,503