A person borrows Rs. 30,000 at 16% per annum compounded quarterly. If he repays the loan in 2 equal annual installments, find the value of each installment ( Approximate to nearest to 10000s)

Interest rate = 16% p.a. compounded quarterly Time period = 2 years Number of quarters = 8 (4 quarters in 1 year)

Amount = P(1 + (r/n))^(nt) = 30000(1 + (0.16/4))^(4*2) = 30000(1.04)^8 = Rs. 46,038.10

The value of each installment can be calculated using the formula for present value of an annuity:

PMT = A*(1 - (1 + r)^-n)/r

where PMT is the installment amount, A is the total amount borrowed, r is the interest rate per installment period, and n is the total number of installments.

PMT = 46038.10*(1 - (1 + 0.04)^-2)/0.04 = Rs. 23,420.25

Therefore, the value of each installment is Rs. 23,420.25.