Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.62000?  Choose the correct choice from the following.
A) 81000 B) 78468.75 C) 81008 D) 81066 E) 81022

Rationale: "62000 * 9 / 8 * 9 / 8 = 78468.75 answer : b"
Answer: B