Answer: A
Let the principal \((p) = x\) rupees,
Time \((t) = 5\) years,
Interest \((I) = \cfrac{x}{4}\) rupees.
∴ Rate of interest \((r) = \cfrac{100 \times I}{p \times t}\)
\(= \cfrac{100 \times \cfrac{x}{4}}{x \times 5} = \cfrac{25x}{5x} = 5\% \)
Let the principal \((p) = x\) rupees,
Time \((t) = 5\) years,
Interest \((I) = \cfrac{x}{4}\) rupees.
∴ Rate of interest \((r) = \cfrac{100 \times I}{p \times t}\)
\(= \cfrac{100 \times \cfrac{x}{4}}{x \times 5} = \cfrac{25x}{5x} = 5\% \)