On January 1,2016,Demarest Company Purchased Equipment and Signed a Six-Year

On January 1,2016,Demarest Company purchased equipment and signed a six-year mortgage note for$160,000 at 15%.The note will be paid in equal annual installments of $42,278,beginning January 1,2017.Calculate the portion of principal amount paid on the third installment.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

A) $24,173
B) $24,000
C) $42,278
D) $18,105