Let's try these one at a time..

The amount of the the T-bill is irrelevant. I assume the discount rate is simple as well.1. A 1 year $100,000 T-bill sells at a discount rate of 3.25%. What simple annual interest rate does it pay. (Round to the nearest 100th of a percent.)

a. 3.36%

b. 3.14%

c. 3.25%

d. None of these

ANSWER = A