What annual payment will discharge a debt of Rs. 1090 due in 2 years at the rate of 5% compound interest?
Choices:
A) 993.2 B) 586.21 C) 534.33 D) 543.33 E) 646.33
Explanation:   Let each installment be Rs. x. Then,   x/(1 + 5/100) + x/(1 + 5/100)2 = 1090   820x + 1090 * 441   x = 586.21   So, value of each installment = Rs. 586.21   Answer: Option 586.21
<result>B</result>
What annual payment will discharge a debt of Rs. 1090 due in 2 years at the rate of 5% compound interest?