Given below are two statements:
Statement I: The length of a tree increases at the rate of 5% every year on its previous year's length. If it is 2.0 feet now, it will increase 0.31525 feet in three years.
Statement II: A vendor sells an item for ₹ 56 making a profit of 40%. The cost price of the item is 40.
In the light of the above statements, Choose the correct answer from the options given below:

Correct option is A

The initial length is 2 feet now
Since there is a 5% growth
After first-year length will be = (105/100) × 2 = 2.1 cm
After the Second year length will be = 2.1 × (105/100) = 2.205 cm
After the Second year length will be = 2.205 × (105/100) = 2.31525 cm
It will increase by .31525 cm in three years.
In the Second case
CP = 40
SP = 56
Profit = 40%
SP = 140 % × 40 = 56