Vitelotte entered into a 5-year lease agreement on 1 October 2020 with payments of 10,975 due each year, starting on 30 September 2021. The interest rate charged by the lessor is 7% and the present value of the lease payments is 45,000. Calculate the non-current liability to present in the Statement of financial position at 30 September 2021.

a. 37,175

b. 25,432

c. 39,777

d. 28,802