The genuine rebate on Rs 5125 due 6 months subsequently is Rs 125. The rate of interest per annum is:
Answer: A
P.W. = Rs (5125-125) = Rs 5000 S.I. on Rs 5000 for 1/2 year is Rs 125 ∴ R = (100*125)/(5000*1/2)% p.a. = 5% p.a.