Answer: C
Let the principal \((p) = 20x\) currency units.
Interest-principal amount \(= 21x\) currency units.
\(\therefore\) Interest \((I) = (21x - 20x)\) currency units \(= x\) currency units.
Time \((n) = 1\) year.
\(\therefore\) Interest rate \((r) = \cfrac{100\times I}{pn}\%\)
\(= \cfrac{100\times x}{20x\times 1}\%\)
\(= 5\%\)
\(\therefore\) Interest rate is \(5\%\).
Let the principal \((p) = 20x\) currency units.
Interest-principal amount \(= 21x\) currency units.
\(\therefore\) Interest \((I) = (21x - 20x)\) currency units \(= x\) currency units.
Time \((n) = 1\) year.
\(\therefore\) Interest rate \((r) = \cfrac{100\times I}{pn}\%\)
\(= \cfrac{100\times x}{20x\times 1}\%\)
\(= 5\%\)
\(\therefore\) Interest rate is \(5\%\).