Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.2880?  Choose the correct choice from the following answers:
A) 8100
B) 3388
C) 7767
D) 2009
E) 3645

Rationale: "2880 * 9 / 8 * 9 / 8 = 3645 answer : e"
Answer: E