Answer:
13.28%
Explanation:
Formula for effective interest rate is :
Effective interest rate = ( 1 + Nominal rate / n) ^n - 1
n: Number of compounding periods in a year
Based on given info and assume there are 365 days in a year, we have:
0.142 = (1 + Nominal rate / 365) ^ 365 - 1
--> Nominal rate = 13.28%
The rate the bank is required to report to potential borrowers is 13.28%
