14. Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Cash Payment Effective Interest Decrease in balance Payment 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 8,527 7,925 7,257 6,515 5,692 4,778 3,763 14,000 5,473 6,075 6,743 7,485 8,308 9, 222 10,237 Outstanding Balance 91,519 77,519 72,046 65,971 59,228 51,743 43, 435 34,213 23,976 What is the effective annual interest rate? (Round final answer to the nearest whole percentage.) 8%. 13% 11% 9%. JUNTS TICIPANTS SVEIL Dive Times New... - 10 - BIUA CE- 13 E- 1 12 13 14 15 16 15. Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment Cash Payment Effective Interest Decrease in balance 12,000 12,000 12,000 Outstanding Balance 81,108 69, 108 64,019 58,421 12,000 5,089 5,598 6,911 6,402 12,000 12,000 12,000 12,000 12,000 12,000 12,000 5,842 5, 226 4,549 3,804 2,984 6,158 6, 774 7,451 8,196 9,016 52, 263 45,489 38,038 29,842 20,826 What is the total effective interest paid over the term of the lease? $81,108 $69,108 $38,892 $120,000