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What is effective rate of interest implicit in agreement

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Question - At the beginning of 2020, Ye Old Donut Co. acquired a machine with a fair value of $7,091,901 by issuing a four-year, noninterest-bearing note in the face amount of $8 million. The note is payable in four annual installments of $2 million at the end of each year. What is the effective rate of interest implicit in the agreement?

Reference no: EM133130403

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