A sum of Rs. 555500 was taken as loan. This is to be paid in two equal annual installments. If the rate of interest be 20% compounded annually, then the value of each installment is:

For a loan paid in equal annual installments with compound interest, each installment = Principal × r/(1 - (1+r)^-n) where r = 0.2, n = 2. Installment = 555500 × 0.2/(1 - 1/1.44) = 111100/(0.3056) ≈ 363600. Alternatively: 555500 = x/1.2 + x/1.44 = x(0.833 + 0.694) = 1.527x. Solving: x = 555500/1.527 ≈ 363600. Answer A is correct.