Oman transport Company signed 7 years lease agreement for the machinery in 2013 and the annual payment was RO 37,500 at the beginning. The fair value estimated at RO 243,600, interest rate is 9 % and straight-line method is applied. The PV (Present Value) is calculated as RO 205,722. Evaluate this lease contract, calculate the interest expense to be paid as per the Amortization table for the Year 5?

a.

RO 15,140

b.

RO 5,937

c.

RO 3,096

d.

RO 13,128

Direct answer without explanation