Answer: B
Let the principal \((p) = x\) rupees.
Time \((t) = 1\) year.
Interest \((I) = \cfrac{x}{20}\) rupees.
∴ Interest rate \((r) = \cfrac{100 \times I}{p t}\)
\(= \cfrac{100 \times \cfrac{x}{20}}{x \times 1} = \cfrac{5x}{x} = 5\%\).
Let the principal \((p) = x\) rupees.
Time \((t) = 1\) year.
Interest \((I) = \cfrac{x}{20}\) rupees.
∴ Interest rate \((r) = \cfrac{100 \times I}{p t}\)
\(= \cfrac{100 \times \cfrac{x}{20}}{x \times 1} = \cfrac{5x}{x} = 5\%\).