Answer: B
Let’s assume the principal amount \((p)=25x\) rupees
Interest amount \((I)=(28x-25x)\) rupees
\(\therefore\) Rate of interest \((r) =\cfrac{100\times I}{pt} \%\)
Let’s assume the principal amount \((p)=25x\) rupees
Interest amount \((I)=(28x-25x)\) rupees
\(=3x\) rupees
Time \((t)=1\) year\(\therefore\) Rate of interest \((r) =\cfrac{100\times I}{pt} \%\)
\(=\cfrac{100\times 3x}{25x\times 1}\%\)
\(=12\%\)
So, the annual interest rate is 12%.