McLeans farm has leased a refrigerator from IndiEquipment.Therewasanupfrontpayment

of $6,000 as executory cost and an annual equal payment of $5,000 starting from the end of May 2022 for ten years. The lease commences today the 27th of May 2021 for a duration of ten years. The life of the truck is 12 years and is expected to have a residual value of 10,000 at the end of the lease. The fair value of the leased asset is at the date of the lease inception. Calculate the interest rate implicit in the lease if the current value of the truck is $40,578

c. McLeans farm has leased a refrigerator from Indi Equipment. There was an upfront payment of $6,000 as executory cost and an annual equal payment of $5,000 starting from the end of May 2022 for ten years. The lease commences today the 27th of May 2021 for a duration of ten years. The life of the truck is 12 years and is expected to have a residual value of 10,000 at the end of the lease. The fair value of the leased asset is at the date of the lease inception. Calculate the interest rate implicit in the lease if the current value of the truck is $40,578 (10 marks)