Given:
Principal amount= $21000
Total amount = $27064
Time t=11 years
The simple interest rate is calculated as,
[tex]\begin{gathered} A=P(1+rt) \\ \frac{A}{P}=1+rt \\ rt=\frac{A}{P}-1 \\ r=\frac{1}{t}(\frac{A}{P}-1) \end{gathered}[/tex]
Here,
[tex]\begin{gathered} A=27064,P=21000,t=11 \\ r=\frac{1}{t}(\frac{A}{P}-1) \\ r=\frac{1}{11}(\frac{27064}{21000}-1) \\ r=\frac{1}{11}\times\frac{6064}{21000} \\ r=0.02625108 \end{gathered}[/tex]
Simple interest rate is,
[tex]\begin{gathered} R=0.02625108\times100 \\ R=2.6251\text{ \%} \end{gathered}[/tex]
Answer: 2.6251 %
