Refer to the following lease amortization schedule. The $10$ payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of $12$ years. The lease is noncancelable.

Payment Cash Payment Effective Interest Decrease in balance Outstanding Balance

$ $108,703$

$1$ $ $15,000$ $ $0$ $ $15,00093,703$

$215,0007,4967,50486,199$

$315,0006,8968,10478,095$

$415,0006,2488,75269,343$

$515,0005,5479,45359,890$

$615,0004,79110,20949,681$

$715,0003,97411,02638,655$

$815,000$ $ $3,092$ $ $11,908$ $ $26,747$

$915,000$

$10$ $ $15,000$

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

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