What annual payment will discharge a debt of Rs 1025 due in 2 years at the rate of 5% compound interest? (a) Rs 550        (b) Rs 551.25       (c) Rs 560       (d) Rs 560.75

Explanation

To find the annual payment that will discharge a debt of Rs. 1025 due in 2 years at a rate of 5% compound interest, we can use the formula for the present value of an annuity.

### Step-by-step Solution:

1. **Identify the Variables**:
- Total amount (A) = Rs. 1025
- Rate of interest (R) = 5%
- Time (n) = 2 years
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