Explanation:

To calculate compound interest for 2 years on Rs 6,250 at an annual interest rate of 8%, use the formula:

$$A=P{(1+\frac{r}{100})}^n$$

- Where:

- $P=6,250$ (Principal amount)

- $r=8\mathrm{\%}$ (Annual interest rate)

- $n=2$ (Number of years)

- Calculation:

- First, find the amount after 2 years:

$$A=6250{(1+\frac{8}{100})}^2$$

$$A=6250\times {\left(1.08\right)}^2$$

$$A=6250\times 1.1664$$

$$A=7,290$$

- Compound Interest:

$$\text{C.I.}=A-P=7,290-6,250=1,040$$

- Correct Option:

- Option 1: Rs 1,040

? Option 1: Rs 1,040