What annual payment will discharge a debt of Rs. 1125 due in 2 years at the rate of 5% compound interest? Choose the correct choice from the following answers:
A) 993.2 B) 551.25 C) 534.33 D) 605.03 E) 646.33
Explanation:   Let each installment be Rs. x. Then,   x/(1 + 5/100) + x/(1 + 5/100)2 = 1125   820x + 1125 * 441   x = 605.03   So, value of each installment = Rs. 605.03   Answer: Option 605.03
<result>D</result>
What annual payment will discharge a debt of Rs. 1125 due in 2 years at the rate of 5% compound interest?