Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.1600? Choose the correct choice from the following:
A) 3000  B) 4200  C) 2025  D) 1205  E) 3251
1800* 9/8 * 9/8   = 2025   Answer: 2025
<result>C</result>
Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.1600?