Jagadison Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease, and the leases don't contain purchase options. Jagadison desires a return of 8% interest on a five-year lease of equipment with a fair value of $970,425. The present value of an annuity due of $1 at 8% for five years is 4.313. What's the total amount of interest revenue that Jagadison will earn over the life of the lease?
