Loan amount = $9,500

Monthly payments = $227.50
Time of loan contract = 5 years

True annual interest rate (to the nearest tenth) =

9500 = 227.5( 1 - (1+r)^-60)/r

where r is the monthly rate
a very tough equation to solve ....

Wolfram says r = .01275 as the monthly rate

so annual rate compounded monthly = .153
or 15.3 %

equivalent annual rate:
1+i = 1.01275^12 = 1.164
or 16.4%

http://www.wolframalpha.com/input/?i=solve+9500+%3D+227.5%28+1+-+%281%2Bx%29%5E-60%29%2Fx

look at second line output, the negative rates are to be ignored.

To find the true annual interest rate, we can use the formula:

True Annual Interest Rate = (Total Interest Paid / Loan Amount) / Time of Loan Contract

First, we need to calculate the total amount paid over the duration of the loan contract. The monthly payment is $227.50, and the loan contract is for 5 years:

Total amount paid = Monthly payments * (Time of loan contract in years)

Total amount paid = $227.50 * 5 = $1,137.50

Next, we need to calculate the total interest paid:

Total interest paid = Total amount paid - Loan amount

Total interest paid = $1,137.50 - $9,500 = -$8,362.50

Since the total interest paid is negative, it means that there is no interest being charged on the loan. Therefore, the true annual interest rate is 0% (to the nearest tenth).

To find the true annual interest rate, we can use the loan amount, monthly payments, and the time of the loan contract.

First, let's calculate the total amount that will be paid over the loan term. Multiply the monthly payments by the number of months in the loan term:

Monthly payments * Number of months = $227.50 * (12 months per year * 5 years) = $227.50 * 60 = $13,650

Next, let's calculate the total interest paid over the loan term by subtracting the loan amount from the total amount paid:

Total interest paid = Total amount paid - Loan amount = $13,650 - $9,500 = $4,150

Now, let's calculate the annual interest rate. Divide the total interest paid by the loan amount, and then divide it by the number of years in the loan term:

Annual interest rate = (Total interest paid / Loan amount) / Number of years = ($4,150 / $9,500) / 5 = 0.4368

Finally, round the annual interest rate to the nearest tenth:

Annual interest rate (to the nearest tenth) = 0.4

Therefore, the true annual interest rate (to the nearest tenth) for this loan is 0.4 or 40%.