Q125
A money lender borrows money at 6% per annum and pays the interest at the end of the year. He lends it at 8% per annum compound interest compounded half-yearly and receives the interest at the end of the year. In this way, he gains Rs. 108 a year. The amount of money he borrows, is:
A.
Rs. 5,000
AnswerB.
Rs. 4,500
C.
Rs. 6,000
D.
Rs. 5,500
Answer: Option A
Solution
Answer: Option A
Solution:
\left. \begin{gathered}
{\text{Rate of interest}} = 6\% {\text{ year}} \hfill \\
{\text{Rate of interest}} = 8\% {\text{ year}} \hfill \\
\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 4\% {\text{ half year}} \hfill \\
{\text{Net rate}} = 4 + 4 + \frac{{16}}{{100}} = 8.16\% \hfill \\
\end{gathered} \right)\begin{array}{*{20}{c}}
{2.16\mu \to 10800} \\
{1\mu \to 50} \\
{100\mu \to {\mathbf{5000}}}
\end{array}