Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable Effective Interest Outstending Balanc 101,385 86, 385 80,924 73,026 65,329 56,862 47,548 37,303 26,033 Cash Decrease in Payment Payment balance 15,080 15,080 15,000 15,088 15,000 15,000 15,980 15,000 15,080 15,080 8,639 8,002 7,333 6, 533 5, 686 4,755 3,730 15,080 6,361 6,998 7,697 8,467 9,314 18,245 11,270 18 What is the effective annual interest rate? (Round final answer to the nearest whole percentage) Multiple Choice 7% 12% 10%