7. On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $38,000 on March 31, 2022. The fair value of the merchandise exchanged is $36,290. Esquire views the financing component of this contract as significant. Required: 2. What is the effective interest rate on the note?

Effective interest rate ?????