B. 1040
Feedback Given, principal = 6250
No. of years = 2
Rate of interest = 8
Amount = P x (1+r/100)n,
=> Amount = 6250 x (1+8/100)2
= 6250 x (108 / 100)2
= 6250 x (108 / 100) x (108 / 100)
= 7290
Compound Interest = Amount - Principal
= 7290 - 6250
= 1040
Therefore, Compound Interest = Rs. 1040