Arun took a loan of Rs. 29000 with simple interest for as many years as the rate of interest. If he paid Rs. 10440 as interest at the end of the loan period, what was the rate of interest?
Correct Answer: 6%
Explanation:
Principle amount = Rs. 29000
Interest = Rs. 10440
Let rate of interest = r%
=> So, time = r years
According to the question,
10440 = 29000 x r x r/100
290 x r x r = 10440
r x r = 1044/29 = 36
r = 6
Hence, the rate of interest = 6% and time = 6 yrs.
