Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $3,000 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years.

Lease Payment	Cash Payment	Effective Interest			Decrease in Balance			Outstanding Balance
									32,720
1	7,400		??			??			25,320
2	7,400		2,532			4,868			20,452
3	7,400		2,045			5,355			15,097
4	7,400		1,510			5,890			9,207
5	7,400		??			??			??
6	3,000		273			2,727			0

What is the effective annual interest rate? (Round your answer to the nearest whole percent.)