Answer:the simple interest rate of the loan is 13.3%
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
From the information given,
P = $16,800
R = ?
T = 54 months = 54/12 = 4.5 years
I = 26854.80 - 16800 = $10054.8
Therefore
10054.8 = (16800 × R × 4.5)/100
10054.8 = 756R
R = 10054/756
R = 13.3%
