A money lender borrows money at 4 % P. a and pays interest at the end of the year. He lends it at 6 % P. a compound interest compounded half-yearly and receives the interest at the end of the year. Thus be gains ₹ 104.50 a year. The amount of money he borrows is
A. ₹ 4500
B. ₹ 5000
C. ₹ 5500
D. ₹ 6000
Answer:B
A money lender borrows money at 4 % P. a and pays interest at the end of the year. He lends it at 6 % P. a compound interest compounded half-yearly and receives the interest at the end of the year. Thus be gains ₹ 104.50 a year. The amount of money he borrows is
A. ₹ 4500 B. ₹ 5000 C. ₹ 5500 D. ₹ 6000