A man borrows Rs. 1200.00 from a bank for a period of 3 months. He finds that he has to repay Rs.1236.00. The bank rate of interest is:
3%
6%
12%
24%
Explanation:
S. I=1236-1200=36
Time=3/12 year
SI = P $\times$ R $\times$ T/100
=> 36=(1200 $\times$ R $\times$ 3)/12 $\times$ 100
=> R=12%.