Question

Lily 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? *

Answer 1

sax

SI = $432

P = $1200

rate = x

time = x

= 432 = t×p×r / 100

= 432 = x × 1200 × x / 100

= 432 = x × 12 × x

= 432 = 2x × 12

= 432/12 = 2x

= 6 = 2x

= 6 ÷ 2 = x

= 3 = x

The rate of interst is 3%

Explanation: