A rotation in the plane is usually written with trigonometry:
Rθ=(cosθsinθ−sinθcosθ).
The Cayley transform produces the same rotation using only addition, multiplication and division — no sine or cosine at all.
The idea
Start from the skew-symmetric matrix
S=(0t−t0).
Its Cayley transform is
C(S)=(I+S)(I−S)−1=1+t21(1−t22t−2t1−t2).
This C(S) is orthogonal with determinant +1, so it is a genuine rotation matrix. Its angle ϕ satisfies
tan2ϕ=t,ϕ=2arctant.
So the parameter t is not the rotation angle — it is the tangent of the half angle.
Important
The single fact to hold on to: t=tan(ϕ/2), not the angle itself.
Note
Order matters. Here I+S and I−S commute, so (I+S)(I−S)−1 and (I−S)−1(I+S) give the same matrix. Writing the factors the other way round, (I−S)(I+S)−1, would instead produce the clockwise rotation R−ϕ.