Present and Future Value Tables of $1 at 11% Are

Multiple Choice

Present and future value tables of $1 at 11% are presented below.

-Titanic Corporation leased executive limousines under terms of $20,000 to be paid at the inception of the lease, and four equal annual payments of $30,000 to each be paid thereafter on the anniversary date of the lease. The interest rate implicit in the lease is 11%. The first year's interest expense would be:

A) $13,200.
B) $10,238.
C) $33,200.
D) $15,543.