The difference between the compound interest and the simple interest on Rs. 6250 at 8% per annum in 2 years is

Principal (P) = Rs. 6250

Rate of interest (r) = 8% and time period (t) = 2 years

Simple interest = $$\frac{P \times r \times t}{100}$$

= $$\frac{6250 \times 8 \times 2}{100}$$

= $$62.5 \times 16=Rs.$$ $$1000$$

Compound interest = $$P[(1+\frac{r}{100})^t-1]$$

= $$6250[(1+\frac{8}{100})^2-1]$$

= $$6250[(\frac{27}{25})^2-1]$$

= $$6250 \times (\frac{104}{625})$$

= $$Rs.$$ $$1040$$

$$\therefore$$ C.I. - S.I. = $$1040-1000=Rs.$$ $$40$$

=> Ans - (B)