A bill is discounted at 5% per annum. If banker's discount

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A bill is discounted at 5% per annum. If banker's discount be allowed, at what rate per cent must the proceeds be invested, so that nothing may be lost ?

1. 5%
2. 4¹⁹/_{21_%}
3. 5⁵/_{19_%}
4. 10%

Correct Option: C

Let the sum be Rs. 100. Then, B.D = Rs. 5.
Proceeds = Rs. (100 - 5) = Rs. 95.
∴ Rs. 5 must be the interest on Rs. 95 for 1 year.
So, rate = (100 x 5) / (95 x 1) = 5⁵/_{19_%}