MCQ Practice

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

B

Rs. 4,500

C

Rs. 6,000

D

Rs. 5,500

Correct Answer: A