On September 30, 2013, Truckee Garbage leased equipment from a supplier and agreed to pay $125,000 annually for 15 years beginning September 30,2014. Generally accepted accounting principles require a liability be record for this lease agreement for the present value of scheduled payments. Accounting, at inception of the lease, Truckee recorded a $1,214,031 lease liability.

Required:

Determine the interest rate implicit in the lease agreement.