Reena borrowed Rs. 1200 at simple interest for a number of years equal to the rate of interest. At the end of the loan term, she paid Rs. 432 in interest. What was the interest rate?
6%
Let rate = r% per annum and time = r years.
SI formula: \(\text{SI} = \dfrac{P \times r \times t}{100}\)
\(432 = \dfrac{1200 \times r \times r}{100} = 12r^2\)
\(r^2 = \dfrac{432}{12} = 36 \Rightarrow r = \mathbf{6\%}\)
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