Sandhill Inc. sold a unit of inventory to a buyer for $1,060 payable in one year. Sandhill estimates that the interest rate for a similar financing arrangement would be 7%. The unit of inventory normally sells for $900. Assuming that the company recognizes an interest component, calculate the discount rate to be applied in calculating the cash selling price of the unit of inventory. Sandhill prepares financial statements in accordance with IFRS. (Round PV factor to 2 decimal places, e.g. 920.25.) Discount rate %