Sampson Corp. purchased a piece of equipment by issuing a \(\$ 20,000,6 \%\) installment note payable. Quarterly payments on the note are \(\$ 1,165\). What will be the reduction in the principal portion of the note payable that results from the first payment?

a. \(\$ 1,165\).

b. \(\$ 300\).

c. \(\$ 865\).

d. \(\$ 1,200\).