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Assume Sarah Leen borrows $$8,000$ from the bank. She must make minimum payment of $$500$ on a monthly basis. $10\%$ of that monthly payment is the interest portion with the remainder being for the principal payment. Since this is the first time Sarah is borrowing from any bank, she is determined to make payments on time to avoid any hit to her credit score. Using $T-$accounts, how would the accounts be impacted if the loan is granted to her?

Select one:

a$.$ No entry is required.

b$.$ Cash increases by $$8,000$ and bank loan decreases by $$8,000.$

c$.$ Cash increases by $$8,000$ and bank loan increases by $$8,000.$

d$.$ Cash increases by $$8,000$ and net worth increases by $$8,000.$