Question

A money-lender borrows money at 5% per annum and pays the interest at the end of the year. He lends it at 12% per annum compound interest compounded half yearly and receives the interest at the end of 6 months. In this way he gains Rs. 2,944 a year. The amount of money he borrows, is (in rupees)

A 29,000
B 32,500
C 36,835
D 40,000
E None of these
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