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 Payment	Cash Payment	Effective Interest			Decrease in Balance			Outstanding 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			0

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