You borrow $20, 000 today at an annual interest rate of 8%. You will repay the loan through three annual payments of $7, 760.67, with the first payment to be made one year from today. When you make the second payment, two years from today, what amount of the $7, 760.67 payment will represent interest?
a. $6, 160.67.
b. $1,600.00.
c. $1, 107.15.
d. $574.86.
