NewCo needs financing to start up its business. A bank is willing to loan NewCo $500,000. NewCo has two options. The first one is to amortize the debt in equal annual installments over 10 years at j₁ = 9%. The second option is to charge interest only at j₁ = x% to be paid at the end of each year. The principal would be paid back at the end of the 10 years. If NewCo sets up a sinking fund at j₁ = 8% to retire the debt in 10 years, and the two options have the same total annual expense (periodic cost), what is x? Given, a_10|0.08 = 6.7101, s_10|0.08 = 14.4866, a_10|0.09 = 6.4177, s_10|0.09 = 15.1929