On January 1, 2020, Master Inc. leased new equipment to Kerr Company under a 10-year noncancelable lease, requiring $20,000 annual payments at the beginning of each year. The new equipment cost Master Inc. $144,938 and has a useful life of 12 years, with no salvage value. Title passes to Kerr at the lease expiration date. What is the rate implicit in the lease agreement? Select one: a. 7.5% b. 10.9% C. 6.3% d. 8.0%