How to calculate Implicit interest rate? and please prepare the EXCEL lease spreadsheet.

On 13 January 2016, Brain entered into a non-cancellable lease agreement to finance the acquisition of a motor vehicle. that will be used exclusively in the business. Details of the finance lease agreement are ' $38,000e Fair value of motor vehicle (GST-exclusive) " Present value of the minimum lease payments (including the present value of the guaranteed residual) Amount financed under the lease agreement $38,000e $38,000e Lease term 4 years " Number of monthly lease payments Monthly lease payments (GST-inclusive) due on the 13th day of each month $693 The first lease payment of $693 is made in advance on 13 January 2016. As the payment is made in advance, there is no interest on the first lease payment. Thereafter, 47 monthly lease payments are due on the 14th day of eache month. The 48th and final lease payment is due on 13th December 2019. .Under the lease agreement, on 13th December 2019 (being the same date as the final $693 lease payment), the company is also required to make the guaranteed lease residual payment of $16,000 (GST-inclusive). The company intends to pay out the guaranteed lease residual in 4 years time and take full legal possession of the motor vehicle.e Total GST-inclusive lease payments (including the guaranteed residual) $49,264- Total GST-exclusive lease payments (including the guaranteed residual) $44,785e Useful/(effective) life of the car (same for accounting and taxation) Depreciation policy: the company uses the straight line method 8 yearse for accounting purposes and the SBE simplified depreciation regime for small business entities for taxation purposes (if applicable). The residual value of the motor vehicle at the end of the eighth year $Nile Note: There are 169 days from 13 January 2016 to 30 June 2016. + Brain has provided with the original finance lease agreement. All of the above information is contained in the lease agreement. Unfortunately, the lease agreement does not stipulate the implicit interest rate. Hence, you will need to calculate the implicit interest rate when preparing your EXCEL lease spreadsheet. On 13 January 2016, Brain entered into a non-cancellable lease agreement to finance the acquisition of a motor vehicle. that will be used exclusively in the business. Details of the finance lease agreement are ' $38,000e Fair value of motor vehicle (GST-exclusive) " Present value of the minimum lease payments (including the present value of the guaranteed residual) Amount financed under the lease agreement $38,000e $38,000e Lease term 4 years " Number of monthly lease payments Monthly lease payments (GST-inclusive) due on the 13th day of each month $693 The first lease payment of $693 is made in advance on 13 January 2016. As the payment is made in advance, there is no interest on the first lease payment. Thereafter, 47 monthly lease payments are due on the 14th day of eache month. The 48th and final lease payment is due on 13th December 2019. .Under the lease agreement, on 13th December 2019 (being the same date as the final $693 lease payment), the company is also required to make the guaranteed lease residual payment of $16,000 (GST-inclusive). The company intends to pay out the guaranteed lease residual in 4 years time and take full legal possession of the motor vehicle.e Total GST-inclusive lease payments (including the guaranteed residual) $49,264- Total GST-exclusive lease payments (including the guaranteed residual) $44,785e Useful/(effective) life of the car (same for accounting and taxation) Depreciation policy: the company uses the straight line method 8 yearse for accounting purposes and the SBE simplified depreciation regime for small business entities for taxation purposes (if applicable). The residual value of the motor vehicle at the end of the eighth year $Nile Note: There are 169 days from 13 January 2016 to 30 June 2016. + Brain has provided with the original finance lease agreement. All of the above information is contained in the lease agreement. Unfortunately, the lease agreement does not stipulate the implicit interest rate. Hence, you will need to calculate the implicit interest rate when preparing your EXCEL lease spreadsheet