Under a regular loan, a bank lends $10,000 for one year at 14 percent simple interest. At the end of the year, the borrower repays the $10,000 plus $1,400 in interest. If the loan is discounted, the bank collects its interest at the time of lending. The borrower receives a net loan of $8,600. At the end of the year when the borrower repays the loan of $10,000. Compute the actual effective interest rate.