A machine is purchased by making payments of $16,000 at the beginning of each of five years with the first payment to be made today. Company determines the cost of the machine is $65,000. What was the implicit interest rate? (Use Time factor table)

Time Factors

Present Value of Ordinary Annuity

Periods 5

9% = 3.88965

10% = 3.79079

11% = 3.69590

12% = 3.60478