Explanation:
To calculate the compound interest, use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{100}\right)^n
\]

where:
- \( P \) = Principal amount (N6250)
- \( r \) = Annual interest rate (16%)
- \( n \) = Number of years (2)

1. Calculate the Amount \( A \):

\[
A = 6250 \left(1 + \frac{16}{100}\right)^2
\]
\[
= 6250 \left(1 + 0.16\right)^2
\]
\[
= 6250 \left(1.16\right)^2
\]
\[
= 6250 \times 1.3456
\]
\[
= 8410
\]

2. Calculate the Compound Interest:

Compound interest is the total amount minus the principal:
\[
\text{Compound Interest} = A - P
\]
\[
= 8410 - 6250
\]
\[
= 2160
\]


The compound interest on N6250 at 16% per annum for 2 years, compounded annually, is 2160.

The correct answer is A. 2160.