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?

General
1

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?

2

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:

To solve this problem, let’s first define the formula for simple interest:

Simple Interest (SI) = Principal (P) × Rate (R) × Time (T)

Given:

  • Principal (P) = Rs. 1200
  • Interest (SI) = Rs. 432
  • Time (T) = Rate (R) years (as per the problem)

We need to find the rate of interest (R).

From the formula of simple interest, we can rearrange it to solve for the rate (R):

R = SI / (P × T)

Substituting the given values:

R = 432 / (1200 × R)

Now, let’s solve for R:

R = 432 / 1200R

1200R^2 = 432

R^2 = 432 / 1200

R^2 = 0.36

Taking the square root of both sides:

R ≈ √0.36

R ≈ 0.6

So, the rate of interest is approximately 0.6 or 60%.

Therefore, Reena’s rate of interest on the loan was approximately 60%.