A curious moneylender borrows money from the market at 4% p.a. and lends it to traders at 12% compounded semi-annually. The net gain to the moneylender through the way of interest is Rs 10,450 at the end of the year. The money borrowed by the moneylender from the market is:
1
Rs 125,000
2
Rs 125,500
3
Rs150,000
4
Rs 120,500