# A loan of Rs. 12300 at 5% per annum compound interest, is to be repaid in two equal annual installments at the end of every year. Find the amount of each installment ?

A. Rs. 6651

B. Rs. 6615

C. Rs. 6516

D. Rs. 6156

**Answer: Option B **

__Solution(By Examveda Team)__

$$5\% = \frac{1}{{20}} = \frac{{21 \to {\text{ Installment}}}}{{20 \to {\text{ Principal}}}}$$
Year | Principal | Installment | |

⇒ I | 20_{×21} → |
21_{×21} |
......(i) |

⇒ II | 400→ | 441 | .....(ii) |

⇒ Total principal = 420 + 400 = 820

⇒ 820 units = Rs. 12300

⇒ 1 units = Rs. 15

⇒ 441 units = Rs. 6615

∴ Each installment = Rs. 6615

Related Questions on Compound Interest

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