SOLUTION: Billy borrowed $95 from zack three months ago. Today, Billy paid zack back $5624. What is the annual interest rate that Billy paid?

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Question 176105: Billy borrowed $95 from zack three months ago. Today, Billy paid zack back $5624. What is the annual interest rate that Billy paid?
Answer by ptaylor(1894) About Me  (Show Source):
You can put this solution on YOUR website!
Interest(I)=Principal(P)*Rate(R)*Time(T) or I=PRT; R=I/PT
The interest that accrued =$5624-$95=$5529
$5529=$95*R*(1/4) multiply each side by 4
$22116=$95R divide each side by $95
R=232.8 in order to convert this to a percentage, we must multiply by 100, so
R(%)=23280%
CK
5529=95*232.8*(1/4)
22116=22116

Does this help?---ptaylor