# Reena Took a Loan of ₹1200 with Simple Interest for as Many Years as the Rate of Interest. If She Paid ₹432 as Interest at the End of the Loan Period, What Was the Rate of Interest? - Mathematics

MCQ

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

• 3.6%

• 6%

• 18%

#### Solution

6%
Explanation :
Let rate = r% and time = r yr

Then, ((1200xxrxxr)/100)=432

⇒12r^2=432⇒r^2=36⇒r=6%

Concept: Simple and Compound Interest
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