At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a four-year, noninterest-baring 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.

1.) What is the effective rate of interest implicit in the agreement?

Do NOT Refer to PV factor table.

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