Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,000 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 Cash Effective Decrease in Payment Payment Interest Outstanding Balance Balance 37,937 1 8,800 ?? 22 29,137 2 8,800 2,914 5,886 23,250 3 8,800 2,325 6,475 16,775 4 8,800 1,678 7,122 9,653 5 8,800 77 27 77 6 2,000 182 1,818 0 What is the effective annual interest rate? (Round your answer to the nearest whole percent.) Multiple Choice 10%