In: Accounting
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.