A financier obtains a loan at 4% annual simple interest and lends it out at 6% annual compound interest, compounded semi-annually. If their annual pro...

Question

A financier obtains a loan at 4% annual simple interest and lends it out at 6% annual compound interest, compounded semi-annually. If their annual profit is ₹104.50, calculate the principal amount borrowed.

Options

A.

4500rs

B.

5000rs

C.

5500rs

D.

6000rs

s.s.c., 2007interest comparisonhalf-yearly compoundingprofit calculation

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