Multiple choice

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

  1. 7.6

  2. 6

  3. 9

  4. Cannot be determined
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using SI = P * R * T / 100, where R = T = r years. So 432 = 1200 * r * r / 100, giving 12r² = 432, so r² = 36, r = 6%. The key insight is rate and time are numerically equal.

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