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:

Solution (By Examveda Team)

\[\left. \begin{gathered} {\text{Rate of interest}} = 6\% {\text{ year}} \hfill \\ {\text{Rate of interest}} = 8\% {\text{ year}} \hfill \\ \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 4\% {\text{ half year}} \hfill \\ {\text{Net rate}} = 4 + 4 + \frac{{16}}{{100}} = 8.16\% \hfill \\ \end{gathered} \right)\begin{array}{*{20}{c}} {2.16\mu \to 10800} \\ {1\mu \to 50} \\ {100\mu \to {\mathbf{5000}}} \end{array}\]