reena took a loan of rs. 1200 with simple interest for as many years as the rate of interest. if she paid rs. 432 as interest at the end of the loan period, what was the rate of interest?
reena took a loan of rs. 1200 with simple interest for as many years as the rate of interest. if she paid rs. 432 as interest at the end of the loan period, what was the rate of interest?
Answer: Let’s assume the rate of interest is “x” percent, and the time period (in years) is also “x” years.
Given that Reena took a loan of Rs. 1200 with simple interest, and she paid Rs. 432 as interest, we can use the formula for calculating simple interest:
Simple Interest (SI) = Principal (P) * Rate (R) * Time (T) / 100
Given:
SI = 432
P = 1200
T = x (since the time period is the same as the rate of interest, both are “x” years)
Substitute the values into the formula:
432 = 1200 * x * x / 100
Simplify:
432 = 12 * x^2
Now, solve for “x^2”:
x^2 = 432 / 12
x^2 = 36
Take the square root of both sides:
x = √36
x = 6
So, the rate of interest is 6 percent.