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Teal MountainCompany leases equipment for 8 years with an annual rental of $1,600per year or $12,800in total. General Leasing (the lessor) agrees to provideTeal Mountainwith

Teal MountainCompany leases equipment for 8 years with an annual rental of $1,600per year or $12,800in total. General Leasing (the lessor) agrees to provideTeal Mountainwith $400for the first 2 years of the lease to defray needed repairs to the equipment.

Determine the total lease payments thatTeal Mountainwill pay for the first 3 years of the lease agreement.

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