SOLUTION: A sum of ₹2460 was borrowed at 5% p.a. compound interest. The loan was paid in 2 equal installments in 2 years. Find the value of each installment.

Let ₹x be the amount of each of the two installments.

At the end of the first year, the loan company added 5% interest
to what was owed.

₹2460 + 0.05∙₹2460 = ₹2460 + ₹123 = ₹2583

The amount ₹x was then paid

Then the balance was ₹2583-₹x

At the end of the second year, the loan company then added
5% interest to what was owed then.

Then the balance became ₹2583-₹x + 0.05(₹2583-₹x)
And since the loan was paid in full at the end of the 
second year, that second payment was also ₹x, as
was the full amount owed which was ₹x 

₹2583-₹x + 0.05(₹2583-₹x) = ₹x

2583-x + 0.05(2583-x) = x

Solve that for x and get ₹1323.

Edwin