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If CI for 1st year is ₹500 and for 2nd year is ₹525 on a certain sum at the same rate, find the rate.

A5%
B10%
C8%
D12%
Answer & Solution
Correct answer: A. 5%
1. Rate = (Difference / 1st year CI) × 100. 2. = (525 − 500) / 500 × 100. 3. = 5%. _Source: jkchrome SI-CI QB, p.4 — year-on-year CI ratio_
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