Titanic Corporation Leased Executive Limos Under Terms of a $20,000

Multiple Choice

Titanic Corporation leased executive limos under terms of a $20,000 first payment upon signing the lease and four equal annual payments of $30,000 on the anniversary date of the lease. The interest rate implicit in the lease is 11%. The first year's interest expense would be: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

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