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 he borrows, is (a) Rs 4500 (b) Rs 5000 (c) Rs 5500 (d) Rs 6000

Options

A. Rs. 6,000
B. Rs. 5,500
C. Rs. 5,000
D. Rs. 4,500

Answer

C