Given:
- Loan amount = Rs. 1,02,000
- Number of instalments = 2
- Rate of interest = 4% p.a., compounded annually

To find:
- Total interest charged under this instalment plan

Solution:
Step 1: Calculate the equal annual instalment:
The equal annual instalment can be calculated using the formula:

Equal annual instalment = Loan amount / Present value of an ordinary annuity factor

The present value of an ordinary annuity factor can be calculated using the formula:

Present value of an ordinary annuity factor = (1 - (1 + r)^(-n)) / r

Where,
r = rate of interest per period
n = number of periods

In this case, r = 4% = 0.04 and n = 2 (two instalments).

Using the formula, we can calculate the present value of an ordinary annuity factor:

Present value of an ordinary annuity factor = (1 - (1 + 0.04)^(-2)) / 0.04
= (1 - (1.04)^(-2)) / 0.04
= (1 - 0.9612) / 0.04
= 0.0388 / 0.04
= 0.97

Now, we can calculate the equal annual instalment:

Equal annual instalment = Loan amount / Present value of an ordinary annuity factor
= Rs. 1,02,000 / 0.97
= Rs. 1,05,154.64

Step 2: Calculate the total interest charged:
The total interest charged can be calculated by subtracting the loan amount from the total repayment amount. The total repayment amount can be calculated by multiplying the equal annual instalment by the number of instalments.

Total repayment amount = Equal annual instalment * Number of instalments
= Rs. 1,05,154.64 * 2
= Rs. 2,10,309.28

Total interest charged = Total repayment amount - Loan amount
= Rs. 2,10,309.28 - Rs. 1,02,000
= Rs. 1,08,309.28

Therefore, the total interest charged under this instalment plan is Rs. 1,08,309.28.

Answer:
The total interest charged under this instalment plan is Rs. 1,08,309.28, which is not given as an option.