On June 30, 2018, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $30,000 on March 31, 2019. The 8% rate is appropriate in this situation. Esquire views the financing component of this contract as significant.

Please show solutions.

What is the effective interest rate on the note?