The Herbertson Company leases machines to clients. Annual rentals are paid each year, with the first payment due on the day the lease begins. A machine with a book value of $10,000 is leased. Unguaranteed salvage value is $1,500. Lease term is five years. Herbertson's interest rate is 5%. What is the approximate annual lease payment?

Select one:

a.$2,156.22

b.$2,309.75

c.$2,199.76

d.$2,038.29

e.$1,941.22