The simple interest accrued on a sum of certain principal in 8 years at the rate of 13% per year is Rs.6500. What would be the compound interest accrued on that principal at the rate of 8% per year in 2 years?

Simple Interest = $$\ \frac{\ P\cdot T\cdot r}{100}$$ where P is the principal, T is the time period and r is the rate of interest.

The simple interest accrued on a sum of certain principal in 8 years at the rate of 13% per year is Rs.6500

6500=$$\ \frac{\ P\times\ 8\times\ 13}{100}$$

P = Rs. 6250

Compound Interest on 6250 for 2 years at 8% rate of interest = 6250$$\left(1+\ \frac{\ 8}{100}\right)^2$$- 6250

= Rs. 1040

A is the correct answer.