A builder borrows 2550 to be paid back with compound interest at the rate of 4% per annum by the end of 2 years in two equal yearly instalments. How much will each instalment be?

For compound interest with equal yearly instalments, let each instalment be x. After 1 year, amount is 2550(1.04). Pay x, balance is 2550(1.04) - x. After 2nd year, this becomes (2550(1.04) - x)(1.04). This equals x. Solving: 2550(1.04²) - x(1.04) = x, so x = 2550(1.0816)/2.04 ≈ 1352. Each instalment is approximately Rs. 1352.