Step 1 :Let's denote the number of hours before 11 P.M. as x and the number of hours after 11 P.M. as y.
Step 2 :We know that \(x + y = 6\) (since they were out for 6 hours) and \(5x + 7.5y = 40\) (since they paid the babysitter $40).
Step 3 :We can solve this system of equations using Gaussian elimination.
Step 4 :By solving the system of equations, we get the values of x and y, which represent the number of hours before and after 11 P.M. respectively.
Step 5 :We can then use these values to determine what time they came home.
Step 6 :Final Answer: They came home at \(\boxed{3:00 \text{ A.M.}}\).