What discount rate should a lender charge to earn an interest of 2 1/4 % on a 90-day loan? Hint: An interest rate r and discount rate d are said to be equivalent if these two simple rates give the...

What discount rate should a lender charge to earn an interest of 2 1/4 % on a 90-day loan?

Hint:

An interest rate
r
 and discount rate
d
 are said to beequivalent if these two
simple
 rates give the same present value for an amount due in the future. Thus,
r =d/(1 -dt) and
d =r/(1 +rt)