Question

Loan amount= 9,500 monthly payments= 227.50, time of loan contract = 5 years. What's the true annual interest rate (to the nearest tenth)

Answer 1

12 monts in a year
227.5 per month
times 12 to find per year
227.5 times 12=2730

find percent
percent means parts out of 100 so
x%=x/100
2730/9500=x/100
multiply both sides by 9500
2730=95x
divide both sides by 95
28.736=x
tenh
28.7
answer is 28.7%