There is a 60% increase in an amount in 5 years at simple interest. What will be the compound interest on Rs. 6,250 for two years at the same rate of interest, when the interest is compounded yearly?

A. Rs. 1,590

B. Rs. 1,560

C. Rs. 1,500

D. Rs. 1,480

Answer: Option A

Solution (By Examveda Team)

$${\text{Rate }}\% = \frac{{60}}{5} = 12\% $$

$$159 \to 159 \times 10 = 1590$$