What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?
Choose the correct option.
A) 551.28 B) 551.25 C) 551.2 D) 551.23 E) 551.21
Let each installment be Rs. x. Then,   x/(1 + 5/100) + x/(1 + 5/100)2 = 1025   820x + 1025 * 441   x = 551.25   So, value of each installment = Rs. 551.25.Answer: 551.25
<result>B</result>
What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?