If 40% increase in an amount in 4 years at SI. What will be the CI of Rs. 10000 after 2 years at the same rate?

First, let's find the rate of interest.

Given that the Simple Interest (SI) increases the amount by 40% in 4 years, the annual rate of interest is 40%/4 = 10%.

Now, we need to find the Compound Interest (CI) for 2 years at this rate.

The formula for CI is A = P(1 + r/n)^(nt), where:

• A is the amount of money accumulated after n years, including interest.
• P is the principal amount (the initial amount of money).
• r is the annual interest rate (in decimal).
• n is the number of times that interest is compounded per year.
• t is the time the money is invested for in years.

In this case, we are compounding annually, so n = 1.

So, the formula simplifies to A = P(1 + r)^t.

Substituting the given values, we get A = 10000(1 + 0.10)^2.

Calculating this, we get A = 10000 * 1.21 = 12100.

So, the amount after 2 years is Rs. 12100.

The compound interest is the amount at the end of the term minus the principal, so CI = A - P = 12100 - 10000 = Rs. 2100.