Question

Milly took a loan of $900 with simple interest for as many years as the rate of interest. If she paid $324 as interest at the end of the loan period, what was the rate of interest?

Answer 1

Ans.	We assumed that the rate of interest is X.
	Number of years are equal to the interest rate so it is also assumed X.
	Interest amount = (Principal amount * Rate of interest * Time) / 100
	$324   =    ($900 * X * X) / 100
	$324 * 100 = $900 * X2
	$32,400 = $900 * X2
	X2 = $32,400 / $900
	X2 = 36
	X = Root of 36 = 6
	So the rate of interest is 6% and the number of years are 6 years.