Every year an amount increases by 1/8th of itself. How much will it be after two years if its present value is Rs.32000? Choose one.
A) 81000  B) 33888  C) 77678  D) 200988  E) 40500

Rationale: "32000 * 9 / 8 * 9 / 8 = 40500 answer : e"
Answer: E