Question

Reena took a loan of ₹1200 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?

Options

• 3.6%

• 6%

• 18%

• Data inadequate

Answer 1

6%
Explanation : 
Let rate = r% and time = r yr

Then, `((1200xxrxxr)/100)=432`

⇒`12r^2=432⇒r^2=36⇒r=6%`