Given data:
The given principal is P=$5,000.
The given simple interest is S I = $250.
The given time is t=11 months =11/12 year.
The expression for the simple interest is,
[tex]SI=\frac{P\times r\times t}{100}[/tex]Substitute the given values in the above expression.
[tex]\begin{gathered} 250\text{=}\frac{5,000\times r\times11}{12\times100} \\ 300000=55000r \\ r=5.45\text{ percent} \\ \approx5\text{ percent} \end{gathered}[/tex]Thus, the rate of interest is 5% annually.
