A man borrows a sum of ₹1,025 and pays back in two equal yearly instalments. If the rate of interest is 5% p.a, compounded yearly, then how much is each instalments?
Explanation:
Let the equal installment be Rs. x.
∴ 1025 × 1.052 = x × 1.05 + x
⇒ 1025 × 1.1025 = 2.05x
⇒ x = 551.25
Hence, option (d).