The Following Events Relate to the City of Willow's Debt

The following events relate to the City of Willow's debt service funds, which occurred during the fiscal year ended December 31, 2003:
All principal and interest amounts payable in 2006 were paid on time.
-The total amount of expenditures that Willow's debt service funds recognize for the year ended December 31, 2006, is:

A) $900,000
B) $950,000
C) $2,900,000
D) $2,950,000
E) Some other amount