On September 30, 2016, Truckee Garbage leased equipment from a supplier and agreed to pay $129,000 annually for 15 years beginning September 30, 2017. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Truckee recorded a $1,174,920 lease liability. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Determine the interest rate implicit in the lease agreement. (Round your answer to 1 decimal place.)