What is the compound interest on ₹10,625 for 2 years at 8% interest per annum, if interest is compounded annually?

₹1,768 ₹1,698 ₹1,625 ₹1,528

₹1,768

From the formula for compound interest, we know, C.I = P(1+$\frac{R}{100})^t$– P  = 10625 [ 1 + \(\frac{8}{100}\) ]² - 10625  = 10625 [ \(\frac{27}{25}\) × \(\frac{27}{25}\) - 1 ]  = 10625 [ \(\frac{729}{625}\)  - 1 ] = 10625 [ \(\frac{104}{625}\) ] = Rs. 1768