 Hello and welcome to the session. The given question says, a loan of rupees 11000 has to be repaid in two equal annual installments. If the interest is charged at a rate of 20% per annum compounded annually, find the amount of each installment. Let's start with the solution. Let us denote a loan of rupees 11000 by the principal P and we are given that the rate of interest is equal to 20% per annum. And we have to find the amount of each installment. So let us denote each installment by x and this is what we have to find out. Now a loan of rupees 11000 has to be repaid in two equal annual installments. So let 2 rupees x be paid at the end of first year is equal to P1 plus and this implies that x is equal to P1 plus 20 divided by 100 into P1 which implies that x is equal to P1 plus on cancelling we have P1 divided by 5 which further implies that x is equal to 6 divided by 5 P1. Therefore P1 is equal to 5 divided by 6 into x. Let this be equation number 1. Now let P2 be the principal for the amount of rupees x second year and we have on following the similar steps as we have used to find P1 we get P2 is equal to 5 divided by 6 whole square into x. Let this be equation number 2. Now the principal P will be equal to P1 plus P2 and P is 11000 and P1 is 5 divided by 6 into x plus P2 is 5 divided by 6 whole square into x. So this implies that 11000 is equal to 5 divided by 6 plus 5 divided by 6 whole square is 25 divided by 36 into x which further implies that 11000 is equal to taking LCM which comes out to be 36 and then solving it further we get this and this implies that 11000 is equal to 55 divided by 36 into x or x is equal to 11000 into 36 divided by 55 which we get on cross multiplying. Now cancelling 11 into 5 is 55, 11 ends are 11 with 3 zeros, 5 twos are 10 with 2 zeros so x is equal to 200 into 36 and this implies that x is equal to 7200 rupees. Hence the answer is amount of each installment is equal to rupees 7200. So this completes the session. Hope you have understood it. Bye and take care.