What is the total interest over the term of the lease?
A)$42,000.
B)$ 8,200.
C)$ 7,400.
D)$ 3,460.

Question

Quizplus · Accepted Answer

To find the total interest over the term of the lease, we need to subtract the cost of the equipment from the total payments made over the term of the lease. The total payments over the term of the lease would be 36 monthly payments of $3000, which is $108,000. Thus, the interest paid over the term of the lease would be $108,000 - $100,600 (total equipment cost) = $7,400.

What Is the Total Interest Over the Term of the Lease