Principal (P) = Rs 62,500

Rate = 8% per annum or 4% per half year

Number of years = 1 1/2

There will be 3 half years in 1 1/2 years.

A = p(1 + R/100)^{n} = Rs [62500(1 + 4/100)^{3}]

= Rs (62500 x 26/25 x 26/25 x26/25)

= Rs 70304

C.I. = A − P = Rs 70304 − Rs 62500 = Rs 7,804