Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,600 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 Cash Payment Payment Effective Interest Decrease in Outstanding Balance Balance 36,470 1 7,900 ?? ?? 28,570 2 7,900 1,714 6,186 22,384 3 7,900 1,343 6,557 15,827 4 7,900 950 6,950 8,877 5 7,900 ?? ?? ?? 6 1,600 91 1,509 What is the effective annual interest rate? (Round your answer to the nearest whole percent.)