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? Select the correct option:  A) 3000  B) 4200  C) 2025  D) 1205  E) 3251

Rationale: "1800 * 9 / 8 * 9 / 8 = 2025 answer : c"
Answer: C