Jay discounts a 100-day note for $25,000 at 13%. the effective rate of interest to the nearest hundredth percent is what %

Effective interest is computed using the formula below:

Effective interest = e^i-1

where

i = stated loan interest = 13%

substitute the given values and we will get

Effective interest = 13.88%

The effective interest of the 100-day note that Jay discounted is equal to 13.88%