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GLade Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease and the leases
GLade Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease and the leases do not contain bargain purchase options. Glade wishes to earn 8% interest on a five-year lease of equipment with a fair value of $323,400. The present value of an annuity due of $1 at 8% for five years is 4.312. What is the total amount of interest revenue that Glade will earn over the life of the lease?
A. $51,600
B. $75,000
C. $129,360
D. $139,450
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