A builder borrows ₹ 2550 to be paid back with compound

A builder borrows ₹ 2550 to be paid back with compound interest at the rate of 4% per annum by the end of 2 years in two equal yearly instalments. How much will each instalment be ?

Here , A = ₹ 2550 , R = 4% per annum , n = 2 years
Let each of the two equal instalments be y .

or P₁ =	25	y
	26

Similarly,

P₂ =		25		²	y =	625	y
		26				676

P₁ + P₂ = A

∴	25	y +	625	y = 2550
	26		676

⇒	(650 + 625)y	= 2550
	676

⇒	1275	y = 2550
	676

⇒ y = 2550 ×	676	= ₹ 1352
	1275

Second Method to solve this question :
Here, P = ₹ 2550, n = 2, r = 4%

Each instalment =	2550 × 104 × 104	= ₹ 1352
	20400