A loan of Rs. 10,000 is repaid in 5 equal annual instalments. If the interest rate is 12% per annum, compounded annually, what is the value of each instalment?

n = 5 (number of payments)
i = 0.12 (annual interest rate)
PV = Rs. 10,000 (present value of loan)

$$\begin{gathered} EMI=\frac{(P.V)i}{(1-{(1+i)}^n)} \\ =\frac{\left(10000\right)(0.12)}{(1-{(1+0.12)}^5)} \end{gathered}$$
EMI = Rs. 3,781.82
Answer: (b) Rs. 3,782