During the year 2022, the interest accrued at the rate of 5% is ₹ 1250. The compound interest accrued at the same rate during the year 2023 is :

1. ₹ 1312.50

2. ₹ 62.50

3. ₹ 6250

4. ₹ 2000

Let principal for first year be ₹ P.

For first year :

Interest = ₹ 1250

R = 5%

By formula,

Interest = $\dfrac{P \times R \times T}{100}$

Substituting values we get :

$\Rightarrow 1250 = \dfrac{P \times 5 \times 1}{100} \\[1em] \Rightarrow P = \dfrac{1250 \times 100}{5} \\[1em] \Rightarrow P = 25000.$

Amount = P + I = ₹ 25000 + ₹ 1250 = ₹ 26250

For second year :

P = ₹ 26250

R = 5%

T = 1 year

Interest = $\dfrac{P \times R \times T}{100} = \dfrac{26250 \times 5 \times 1}{100}$ = ₹ 1312.50

Hence, Option 1 is the correct option.