<PRE><B>Question 1124093</B>
1 paise is equal to 1/100 rupees.


therefore 5 paise is equal to 5/100 rupees.


the interest charge per month is therefore 5/100 rupees for every rupee that is borrowed.


the interest rate per month is therefore (5/100) / 1 which is equal to 5/100 which is equal to .05 per month.


multiply that by 100 to get an interest rate of 5% per month.


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