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. Cash Payment Effective Interest Decrease in balance Payment 1 2 3 4 5 6 7 8 9 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 0 5,396 4,981 4,530 4,037 3,501 2,916 2,278 ? ? 10,000 4,604 5,019 5, 470 5,963 6,499 7,084 7,722 ? ? Outstanding Balance 69,952 59,952 55,348 50,329 44,859 38,896 32,397 25, 313 17,591 ? ? 10 What is the effective annual interest rate? (Round final answer to the nearest whole percentage.) Multiple Choice 11% O O O 7%. O 6%. 9%. O