On July 1, 2020 Trolley & Train World borrowed money from First Friendly National Bank by issuing a $25,000, 90 day, non-interest bearing note. The note was discounted to 14%.

Required: Compute the following: Use 360-days in a year.

1. How much money did Trolley and Train World receive? $

2. What was the total amount of interest paid? $

3. What is the effective 90 day interest rate on this note? Round percentage to two decimals. %

4. What is the approximate annual effective interest rate on this note payable? Round your intermediate calculation to four decimal places and your final answer to two decimal places. %