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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?3.6618Cannot be determinedNone of these

Question

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?3.6618Cannot be determinedNone of these

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Solution

The problem is about simple interest and can be solved using the formula for simple interest which is I = PRT/100, where I is the interest, P is the principal amount, R is the rate of interest, and T is the time period.

Given in the problem: Principal, P = Rs. 1200 Interest, I = Rs. 432 Rate of interest, R = Time period, T (in years)

We can substitute these values into the formula and solve for R:

432 = 1200 * R * R / 100

R^2 = 432 * 100 / 1200

R^2 = 36

Taking the square root of both sides to solve for R, we get R = 6.

So, the rate of interest is 6%.

This problem has been solved

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