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Explosive Leasing acquires equipment and leases it to customers under long-term sales-type leases. Explosive earns interest under these arrangements at a 12% annual rate. Explosive purchased a device and then leased it for $419,200 under an arrangement that specified annual payments to be received for five years, beginning at the commencement of the lease. The lessee had the option to purchase the device at the end of the lease term for $56,600 when it was expected to have a residual value of $113,200. Calculate the amount of the annual lease payments. (Do not round intermediate calculations. Round your answer to nearest whole dollar amount.) The present value of $1: n = 5, i = 12% is 0.56743. The present value of an ordinary annuity of $1: n = 5, i = 12% is 3.60478. The present value of an annuity due of $1: n = 5, i = 12% is 4.03735.

• $107,381

• $103,830

• $117,850

• $95,876