Kataran Company enters into a 4-year lease transaction, with payments due at the beginning of each year.

The lease payments are $ 78, 000 per year.

The fair value of the leased asset is $ 290,000.

The lessor's deferred initial direct costs are equal to $ 24,000.

The lessor's estimate of the unguaranteed residual asset is $ 160,000.

Based on the above information, what is the implicit rate in the lease for Kataran?