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Baker Company has entered into a lease agreement for a machine which can be purchased for $137,183. Baker Company has chosen to lease the machine

Baker Company has entered into a lease agreement for a machine which can be purchased for $137,183. Baker Company has chosen to lease the machine for $25,000 per year on a 9-year lease. Payments are due at the start of each year. Calculate the implied interest rate for the lease payments.

a. 10%
b. 11%
c. 12%
d. 15%
e. 18%

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