Archers Ltd entered into a three-year lease payable at 4,000 a year in advance for an item of machine. The fair value of the machine was 11,182. Assuming the implicit interest in the lease is 8% per annum. What would be the amount of interest be shown in the accounts for the first year of operations (round your answer to nearest )?

The annuity factor of 8% interest for 2 years is 1.7833.