Answer: B
If the principal \((p) = x\) rupees,
time \((t) = 1\) year,
and interest \((I) = \cfrac{x}{20}\) rupees,
Then the interest rate \((r)\) is calculated as: \[ r = \frac{100 \times I}{pt} = \frac{100 \times \frac{x}{20}}{x \times 1} = \frac{5x}{x} = 5\% \]
If the principal \((p) = x\) rupees,
time \((t) = 1\) year,
and interest \((I) = \cfrac{x}{20}\) rupees,
Then the interest rate \((r)\) is calculated as: \[ r = \frac{100 \times I}{pt} = \frac{100 \times \frac{x}{20}}{x \times 1} = \frac{5x}{x} = 5\% \]