Enabled: Exam $2$ chap $14-17($i$)$

Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $$1,700$ purchase option is reasonably certain to be exercised at the end of the five year lease. The asset has an expected economic life of eight years.

$\backslash$table$[[\backslash$table$[[$Lease$],[$Payment$]],\backslash$table$[[$Cash$],[$Payment$]],\backslash$table$[[$Effective$],[$Interest$]],$Decrease in Outstanding$],[$Balance$,$Balance,,,,$],[,,,,$$$39,670,],[1,$$$8,600,??,??,31,070,],[2,8,600,$$$1,864,$$$6,736,24,334,],[3,8,600,1,460,7,140,17,195,],[4,8,600,1,032,7,568,9,626,],[5,8,600,??,??,??,],[6,$$$1,700,$$$96,$$$1,604,$$$0,]]$

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

Multiple Choice

$$44,700$

$$2,682$

$$5,030$

$$6,612$

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