Based on the information given, it can be deduced that the annual interest rate will be 8.5%.
Principal = 5000
Interest = 5425 - 5000 = 425
Time = 1 year
Rate = Unknown.
Simple Interest = PRT / 100
425 = (5000 × R × 1)/100
42500 = 5000R.
R = 42500/5000
R = 8.5%
In conclusion, the correct option is 8.5%.
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