Multiple choice

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

  1. 3.6

  2. 6

  3. None of these

  4. 18

  5. Data inadequate
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SI = (P * R * T) / 100. 432 = (1200 * R * R) / 100. 432 = 12 * R^2. R^2 = 36, R = 6.

AI explanation

Using the simple interest formula, I = PRT divided by 100, where the time T and rate R are the same value. Substituting the given values gives 432 = (1200 multiplied by R multiplied by R) divided by 100, which simplifies to R squared equals 36. Solving for R yields a value of 6. Therefore, the rate of interest was 6.

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