Refer to the following lease amortization schedule. The five payments are made annually starting with the...

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Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the le

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Answer 1

Answer #1

Lease payment	Cash Payment	Effective interest	Decrease in balance	Outstanding balance
				36470
1	7900	0	*7900*	28570
2	7900	1714	6186	22384
3	7900	1343	6557	15827
4	7900	950	6950	8877
5	7900	*533*	*7368*	*1509*
6	1600	91	1509	0
Total	41100	4631	36470

Total interest paid is $4631

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Answer 2

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