ramzes

present value of the lease = 43121 given N=5, Pmt = 10,000 and I=8%

PV of lease on the first day of lease = 43121 and you pay 10,000 on the the first day of the lease
So, you owe 43121-10000 = 33121 on the first day of the lease. So, in first year you would recognize interest expense on 33121 i.e. 33121*.08 = 2649

Hope this is helpful