A money lender borrows money at 4% per annum and pays the interest at…

Question

A money lender borrows money at 4% per annum and pays the interest at the end of the year. He lends it at 6% per annum compound interest compounded half yearly and receives the interest at the end of the year. In this w…

Accepted Answer

Option B. Rs. 5000. Answer & Solution Answer: Option B Solution: & Let the sum Rs . x & Then, & C .I . when compounded half yearly & = Rs . [ x × ( 1 + 3100 )^2 - x ] & = Rs . ( 1060910000x - x ) & = Rs . ( 609x10000 ) & C .I . when compounded yearly & = Rs . [ x × ( 1 + 4100 ) - x ] & = Rs . ( 26x…

A money lender borrows money at 4% per annum and pays the interest at the end of the year. He lends it at 6% per annum compound interest compounded half yearly and receives the interest at the end of the year. In this way, he gains Rs. 104.50, a year. The amount of money be borrows, is ?

Solution