Answer the questions from based on following paragraph.

Preeti, Kabir and Shershah are partners in a firm. Kabir retires from the firm. On his date of retirement, ₹1,00,000 became due to him. Preeti and Shershah promised to pay him in four yearly equal installments plus interest @ 12% p.a. on the unpaid balance every year at the end of the year, to which he agreed.

The dues of Kabir is to be paid in 4 yearly installment. The amount of each installment will be:

₹25,000

The correct answer is option 2- ₹25,000.

Total due amount = 1,00,000
Installments = 4
Each installment = 1,00,000/4
                         = 25,000

Thus, 25,000 is the amount of each installment.