A lessee leases an asset on a non$-$cancellable lease contract

with a primary term of five years from $1$ January $20$X$1.$ The

rental is $650$ per quarter payable in advance.

$$ The lessee has the right to continue to lease the asset after the

end of the primary period for as long as they wish at a nominal

rent. In addition, the lessee is required to pay all maintenance

and insurance costs, as they arise.

$$ The leased asset could have been purchased for cash at the

start of the lease for $10,000$ and has a useful life of eight years.

$$ Calculate the interest rate implicit in the lease.