Lease Question

Dear Sir, In one of your question on lease as follows: On 1 January 2015, Plum entered into a five year lease of machinery. The machinery has a useful life of six years. The annual lease payments are $5,000 per annum, with the first payment made on 1 January 2015. To obtain the lease Plum incurs initial direct costs of $1,000 in relation to the arrangement of the lease but the lessor agrees to reimburse Pear $500 towards the costs of the lease. The rate implicit in the lease is 5%. The present value of the minimum lease payments is $22,730. Demonstrate how the lease will be accounted in the financial statements over the five year period. How were you able to obtain minimum lease payments of $22730 as $5000 x 4.325 = $21625. Thanks