If you buy an item for $95 with the agreement to pay $100 in 90 days what is the effective annual rate on this transaction?
P = Po + Po*r*t.
t = 90days/360days = 0.25 yrs.
100 = 95 + 95*r*0.25. r = ?.
t = 90days/360days = 0.25 yrs.
100 = 95 + 95*r*0.25. r = ?.