Refer to the following lease amortization schedule. The 10 payments are made annually starting with the inception of the lease. Title does not transfer to the lessee and there is no bargain purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable.

Payment	Cash Payment	Effective Interest	Decrease in balance	Balance
				87,867
1	13,000		13,000	74,867
2	13,000	7,487	5,513	69,354
3	13,000	6,935	6,065	63,289
4	13,000	6,329	6,671	56,618
5	13,000	5,662	7,338	49,280
6	13,000	4,928	8,072	41,208
7	13,000	4,121	8,879	32,329
8	13,000	3,233	9,767	22,562
9	13,000	?	?	?
10	13,000	?	?	?

What is the total effective interest paid over the term of the lease?

	$130,000.
	$42,133.
	$74,867.
	$87,867.