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?

Q: 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?

Given Principal P = Rs. 1200 Simple interest SI = Rs. 432 Time (years) equals rate r (in %), i.e., t = r Compute SI = 𝑃 × 𝑟 × 𝑡 100 100 P×r×t = 1200 × 𝑟 × 𝑟 100 100 1200×r×r = 12r^212r^2 = 432 ⇒ r^2 = 36 ⇒ r = 6%

Difficulty: Easy

5%
6%
8%
10%
None of these

Correct Answer: 6%

Explanation:

Given

Principal P = Rs. 1200
Simple interest SI = Rs. 432
Time (years) equals rate r (in %), i.e., t = r

Compute
SI = 𝑃 × 𝑟 × 𝑡 100 100 P×r×t = 1200 × 𝑟 × 𝑟 100 100 1200×r×r = 12r^212r^2 = 432 ⇒ r^2 = 36 ⇒ r = 6%

← Previous Question Next Question→

More Questions from Simple Interest

How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?
A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What is the sum?
A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:
A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same rate of simple interest. The rate of interest per annum is:
Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of simple interest earned in 2 years be Rs. 3508, what was the amount invested in Scheme B?
A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest per annum is:
An automobile financier claims to be lending money at simple interest, but he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes:
A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8 months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of interest?
A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2% more, how much more interest would it have earned?

Discussion & Comments

No comments yet. Be the first to comment!

Join Discussion