(Answered) Questiontriple tango track leases exercise equipment to its

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Triple Tango Track leases exercise equipment to its customers under direct-financing leases. Typically the equipment has no residual value at the end of the leases and the contracts call for payments at the beginning of each year. Triple Tango Track's target rate of return is 10%. On a five year-lease of equipment with a fair value of $485,100, how much interest revenue will Triple Tango Track earn over the life of the lease? (A) $96,575 (B) $114,900 (C) $121,275 (D) $194,040

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