To calculate the compound interest, we use the formula:

$A = P \left(1 + \frac{r}{100}\right)^t$

Where:

• $A$ = the amount (final value of investment)
• $P$ = the principal (initial investment)
• $r$ = annual interest rate
• $t$ = time (in years)

Given:

• $P = 8500$
• $r = 30\%$
• $t = 1$ year (since it's compounded annually)

Step 1: Calculate the amount $A$.

$A = 8500 \times \left(1 + \frac{30}{100}\right)^1 = 8500 \times 1.30 = 11050$

Step 2: Calculate the compound interest.

$\text{Compound Interest} = A - P = 11050 - 8500 = 2550$

So, the approximate value of the compound interest earned is Rs. 2550.

Do you want more details or have any questions?

Here are 5 related questions for further exploration:

1. How would the compound interest change if the time period is 2 years?
2. What would be the value of the investment if the interest was compounded semi-annually?
3. How does compound interest differ from simple interest?
4. How does increasing the interest rate to 40% affect the compound interest?
5. What would the compound interest be for a different principal, say Rs. 10,000?

Tip: For better financial returns, always check how frequently the interest is compounded. More frequent compounding leads to higher interest earnings.