Jay discounts a 100-day note for 25000 at 13%. The effective rate of interest to the nearest hundredth percent is?

I assume that there are 360 days in a year.

Simple discount

25,000*0.13 * (100:360) = 902.78

Cash in hand at the beginning of 100 days is

25,000-902.78=24,097.22

Effective rate of interest is

902. 78=24097.22*r * (100:360)

Solve for r

r=902.78: (24,097.22 * (100:360))

r=0.1349*100

r=13.49% ... answer