Reena took out a Rs. 1200 loan with simple interest for the same number of years as the interest rate. What was the rate of interest if she paid Rs. 432 in interest at the conclusion of the loan period?
A. 3.6
B. 6
C. 18
D. Cannot be determined
Answer:B
Reena took out a Rs. 1200 loan with simple interest for the same number of years as the interest rate. What was the rate of interest if she paid Rs. 432 in interest at the conclusion of the loan period?
A. 3.6 B. 6 C. 18 D. Cannot be determined
Explanation: Assume that rate equals R percent and time equals R years. Then, 12R square = 432 R square = 36 R = 1200 x R x R/100 = 6