Question

Reena took a loan of = 1,200 with simple interest for as many years as the rate of interest. If she paid 432 as interest at the end of the loan period, what was the rate of interest? (1) 3.6 (2) 6 (3) 18 (4) 10. Don't spam✖️

Answer 1

Answer:

2) 6 is the correct answer

Step-by-step explanation:

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Answer 2

Here the principal amount is given to be Rs. 1200

Also, the interest she paid is 432

According to the question, the rate of interest is equal to the number of years for which the loan was taken

Let us assume x to be the rate of interest, then the time period will also be x

Using the formula of simple interest

Simple interest = ( P × R × T ) / 100

                  432 = ( 1200 × x × x ) / 100

              43200 = 1200x²

                     x² = 36

                     x = 6

Hence, the rate of interest was 6%

The correct answer is option 2