Reena took a loan of Rs.1200 with simple interest for as many years as the rate of interest is. If she paid Rs.432 as interest at the end of the loan period, what was the rate of interest?
Answer & explanation
Correct answer: option 1
Let rate = R% and
time = R years.
Then, \(\frac{1200 × R × R}{100}\) = 432
12R2 = 432
R2 = 36
R = 6%