Question

Rajni borrowed Rs. 1,500 from a bank and repaid the

entire amount with interest in two equal annual installments, the first instalment being paid a year after Rajnish borrowed from the bank. If the rate of interest was 40% per annum, compounded annually, then what was the value (in Rs.) of each instalment paid by Rajni.

A 1350

B 1275

C 1225

D 1175