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Exercise 5-26(Algo) Lease payments; solve for unknown interest rate [LO5-9,5-10] On March 31,2024,...

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Accounting

Exercise 5-26(Algo) Lease payments; solve for unknown interest rate [LO5-9,5-10]
On March 31,2024, Southwest Gas leased equipment from a supplier and agreed to pay $220,000 annually for 25 years beginning March 31,2025. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $2,348,451 lease liability.
Required:
Determine the interest rate implicit in the lease agreement.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
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