Cash flow

The following scenario relates to questions 376–380
Extracts from Depay’s financial statements for the year ended 30 September 20X2 are shown
below.
Statement of profit or loss extract:     $000
Finance costs         (60)
 
Statement of financial position extract:
20X2 20X1
$000 $000

5% loan notes 515 500
Lease liabilities 300 310
The following information is relevant:
(ii) $40,000 of the finance costs relate to the loan notes which are repayable at a premium,
making the effective rate of interest 8%. The remaining interest relates to the lease
liabilities.
(iv) Depay acquired $70,000 of new assets under lease agreements during the year. Depay
makes annual payments under leases on 30 September each year.

377 What will be recorded in Depay’s statement of cash flows under interest paid?
A $20,000
B $25,000
C $45,000
D $60,000

Dear Sir,
The answer to the following question is C ie 45000 (20000+ 25000)
I understood that interest paid for loan notes will be 5% × 500000 = 25000

Finance cost for lease liability would be 60000- 40000(8%×500000) = 20000
But they have taken lease liability paid as 20000
How did we conclude that the finance cost of 20000 relating to lease liability WAS PAID in the year?
Pls help
Thanks