Classic Malibu Ltd decides to lease some machinery from Noosaville Ltd on the following terms:

• Date of entering lease: 1 July 2023.
• Duration of lease: 10 years.
• Life of leased asset: 10 years.
• Unguaranteed residual value: $15 000.
• Lease payments: $10 000 at lease inception, $12 000 on 30 June each year for the next 10 years.
• Fair value of leased asset at date of lease inception: $97 469.

REQUIRED
Determine the interest rate implicit in the lease.