Simple Interest on a sum at 4% per annum for 2 years is 80. The compound interest on the same sum for the same period is_________?

A. Rs. 81.60
B. Rs. 160
C. Rs. 1081.60
D. None of these

Explanation:

Principle = Rs.(8000/8) = Rs. 1000

Therefore, C. I = Rs. [{ 1000 × (1 +4/100)² – 1000}]

= Rs. 81.60