Simple way to solve this question is to use options.

From SI, we know that X*y=40,000.

Now, put the value of X = 8000, we will have y = 5%

To calculate CI,

Now, we know 1st year Amount= 8000+5% of 8000= 8400.

2nd year, Amount = 8400 + 5% of 8400 = 8820.

We can see after 2 years Interest = 8820-8000= 820. hence, it satisfies the question. Hence A is the correct answer

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