Alex took a loan of ₹1200 with simple interest for as many years as the rate of interest. If he paid ₹432 as interest at the end of the loan period, what was the rate of interest?

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12%

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18%

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36%

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Solution

The correct option is A 6%
Let rate = R% and time = R years
Prinicpal amount = ₹1200
Interest paid = ₹432
From the formula of simple interest, we can write,
$\frac{1200 \times R \times R}{100} = 432 12 R^{2} = 432 R^{2} = \frac{432}{12} = 36 R = \sqrt{36} = 6 %$

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Alex took a loan of ₹1200 with simple interest for as many years as the rate of interest. If he paid ₹432 as interest at the end of the loan period, what was the rate of interest?

The correct option is A 6%Let rate = R% and time = R years Prinicpal amount = ₹1200 Interest paid = ₹432 From the formula of simple interest, we can write, 1200×R×R100=43212R2= 432R2=43212=36R=√36=6%

The correct option is A 6%
Let rate = R% and time = R years
Prinicpal amount = ₹1200
Interest paid = ₹432
From the formula of simple interest, we can write,
$\frac{1200 \times R \times R}{100} = 432 12 R^{2} = 432 R^{2} = \frac{432}{12} = 36 R = \sqrt{36} = 6 %$