To find the equivalent nominal interest rate given an effective interest rate (EFF) of 38% and daily compounding, we can use the following formula that links the nominal interest rate ($r_{nom}$) and the effective interest rate ($r_{eff}$):

$r_{eff} = \left( 1 + \frac{r_{nom}}{n} \right)^n - 1$

Where:

• $r_{eff}$ is the effective interest rate (38% or 0.38).
• $r_{nom}$ is the nominal interest rate (what we are solving for).
• $n$ is the number of compounding periods per year (for daily compounding, $n = 365$).

We can now rearrange this formula to solve for the nominal interest rate ($r_{nom}$):

$1 + \frac{r_{nom}}{n} = \left( 1 + r_{eff} \right)^{1/n}$

Solving for $r_{nom}$:

$r_{nom} = n \times \left[ \left( 1 + r_{eff} \right)^{1/n} - 1 \right]$

Let me calculate this for you.The equivalent nominal interest rate, with daily compounding, is approximately 32.22%.

Would you like more details or have any questions about the calculation?

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