Velde Company, as lessee, enters into a lease agreement on January 1, 2020, for equipment with Exceptional Computer Company (lessor). The equipment is not of a specialized nature.

1. The lease agreement is non-cancellable with a term of three years.
2. The equipment has a cost and fair value at commencement of the lease of $50,000, an estimated economic life of five years, and a residual value at the end of the lease $10,000 (unguaranteed).
3. The lease contains no renewal options. The equipment reverts to Exceptional Computer Company at the termination of the lease. Rental payments are made at the beginning of each year.
4. The implicit rate of Exceptional Computer Company (the lessor) is 6% and is known by Velde Company.

Note: Present Value of $1(n=3, i=6%)=0.83962

Present Value of an Annuity Due (n=3, i=6%)=2.8333

Based on above information, how much annual lease payment should Velde pay to lessor?