Use the Following Information for Questions

Use the following information for questions
There are two types of borrowers, low risk L and high risk H.As a lending officer, you cannot distinguish between the two types of borrowers.You believe, however, that there is a 0.5 probability that a randomly chosen borrower is L, and 0.5 that it is H.There are 500 potential loan applicants, each requiring $150.Type L will invest this loan in a single-period project that pays $250 with probability 0.8 or zero with probability 0.2.Type H will invest the loan in a single-period project that pays $275 with probability 0.5 and zero with probability 0.5.Your bank is a monopolist to these borrowers.The riskless interest rate is 6%, and a borrower must have at least $2 of net profit in the successful state in order to apply for the loan.Everybody is risk neutral and suppose that you have $75,000 to lend.
-Suppose that you have decided to charge 65% interest rate.What would be the type H's net profit in the successful state?

A) $10.00
B) $27.50
C) $45.00
D) $67.50
E) $100.00