Question

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

Answer 1

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%