There is 40% increase in an amount in 8 years at simple

There is 40% increase in an amount in 8 years at simple interest. What will be the compound interest (in rupees) of Rs 30000 after 2 years at the same rate ?

According to the question,
If principal = Rs. 100 then interest = Rs. 40.

∴ Rate =	S.I. × 100
	Principal × Time

Rate =	40 × 100	= 5% per annum
	100 × 8

Case II.

∴ A = P		1 +	R		^T
			100

A = 30000		1 +	5		²
			100

A = 30000		1 +	1		²
			20

A = 30000		20 + 1		²
		20

A = 30000 ×	21	×	21	= Rs. 33075
	20		20

∴ C. I. = Amount - Principal
∴ C. I. = Rs. (33075 – 30000) = Rs. 3075