Company A borrowed $4,000 from Company B and at the end of 90 days Company A will pay Company B $4,250. Company As liability and implicit annual interest rate is:

A current liability of $4,250 with an implicit annual interest rate of 27.87%

A current liability of $4,250 with an implicit annual interest rate of 6.25%

A current liability of $4,000 with an implicit annual interest rate of 27.87%

A current liability of $4,000 with an implicit annual interest rate of 6.25%