What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5% compound interest?
Select:
A) Rs. 551.29 B) Rs. 551.25 C) Rs. 551.21 D) Rs. 551.22 E) Rs. 551.23
Explanation:   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:Rs. 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?