Question

In: Accounting

Payment Cash Payment Effective Interest Decrease in balance Outstanding Balance 69,611 1 11,000 11,000 58,611 2...

Payment Cash
Payment
Effective
Interest
Decrease
in balance
Outstanding Balance
69,611
1 11,000 11,000 58,611
2 11,000 7,033 3,967 54,644
3 11,000 6,557 4,443 50,201
4 11,000 6,024 4,976 45,225
5 11,000 5,427 5,573 39,652
6 11,000 4,758 6,242 33,410
7 11,000 4,009 6,991 26,419
8 11,000 3,170 7,830 18,589
9 11,000 ? ? ?
10 11,000 ? ? ?


What is the total effective interest paid over the term of the lease?

Multiple Choice

  • $110,000.

  • $58,611.

  • $69,611.

  • $40,387.

Solutions

Expert Solution


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