Question

if sheila paid 797.50 dollars in interest on a 5 years loan of 5800 dollars. what was the annual interest rate?

Answer 1

can someone help?

Answer 2

13.75% of 5800

Answer 3

nevermind
its 2.75%

Answer 4

797.50=5800 (five years) whats for one year ?

Answer 5

13.75% would be the anual rate for a one year loan on the 5800, but we are talking about a span of 5 years, so you would divide 13.75 by 5 and you get 2.75%.